Ledger adds Crypto Loan feature to borrow USDC or USDT against Bitcoin while keeping self-custody
AI Market Summary
Ledger's new in-app Crypto Loan feature enables users to borrow USDC/USDT against cbBTC or wBTC while retaining self-custody, using Morpho via Yield.xyz and requiring hardware confirmations. This improves accessibility and perceived safety of DeFi credit for Bitcoin holders, potentially increasing on-chain collateralization and borrowing activity across Ethereum and major L2s. Variable rates and liquidation risk remain key constraints.
Impact level
● Medium
Affected assets
BTC/USDT+1.14%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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Ledger said it has launched a new feature that lets users borrow stablecoins using bitcoin as collateral without giving up self-custody. The Crypto Loan feature allows Ledger Wallet users to post wrapped bitcoin and borrow USDC or USDT inside the app, with all loan actions confirmed on a Ledger hardware device. The tool is powered by the on-chain lending network Morpho and is integrated via Yield.xyz, Ledger said. Ledger also added direct access to Morpho’s lending markets and curated vaults across Ethereum and major layer-2 networks for depositing, borrowing and earning.
