Ledger has introduced a self-custodial lending feature within its wallet application, allowing Bitcoin holders to access liquidity without selling their assets. The service enables users to pledge wrapped Bitcoin, specifically cbBTC or wBTC, as collateral to borrow stablecoins like USDC or USDT.
The new functionality is powered by the decentralized credit network Morpho, with technical support provided by Yield.xyz. Users manage their loans directly through the Ledger wallet interface, where all key actions require physical approval on a Ledger hardware device to ensure security.
In addition to the loan feature, Ledger now offers direct access to the Morpho protocol for its hardware signers. This integration allows users to connect their devices to the network without relying on browser extensions or third-party software wallets, facilitating a liquidity loop.
The company, which claims to secure nearly 30% of all retail-held Bitcoin, announced the rollout of the loan service to eligible users with plans for gradual expansion. Ledger also unveiled a limited-edition Nano Gen5 device, produced in a run of 250 units in collaboration with the NBA team San Antonio Spurs.
