Ledger Crypto Loan lets you borrow against Bitcoin

Ledger opened Crypto Loan on October 7, 2026, inside Ledger Wallet. The company put the offer in one line on X: keep your Bitcoin, get your liquidity. Eligible users can pledge wrapped Bitcoin and borrow a stablecoin without selling the coins underneath. The post is here:

The collateral and the loan have names, and Ledger's own October release notes are the source. Borrowers can use wrapped Bitcoin, cbBTC or wBTC, as collateral and borrow USDC or USDT directly in the app. The Bitcoin exposure stays for the life of the loan. A holder who wants dollars does not have to close the position that got them here. That is the whole product, stated by the company that ships the wallet.

Two firms sit under the button. Morpho is the onchain credit network. Ledger says the smart contracts govern every interaction, and the collateral stays on-chain rather than on someone else's balance sheet. Yield.xyz handles the technical integration inside the wallet the user already has. Morpho, in its own note the same day, called Crypto Loan the second Morpho-powered credit product in Ledger Wallet, after Stablecoin Earn last year. Users deposit wrapped BTC into Morpho markets and borrow stablecoins from those isolated markets. Morpho's contracts take the collateral, match it to stablecoin liquidity, and keep the interest, the position, and the liquidation rules.

The signer is still the last word. Ledger says every contract function, from the first approval and the collateral supply through repayment and withdrawal, shows up in plain language on the device's Secure Screen before the user approves it. Clear Signing is the phrase on the post. Private keys stay inside the Secure Element and do not leave the signer. In the app, a borrower can watch the loan-to-value ratio, add collateral, repay, borrow more, or withdraw, and can simulate the loan before committing. Morpho says a user keeps control of the position and can repay and take collateral back any time the position stays healthy.

Decrypt reported that the feature was unveiled Wednesday at TOKEN2049 in Singapore, and that Yield.xyz is the same provider Coinbase uses for its own Bitcoin-backed loans. Ledger's October notes add a second door beside the loan: direct access to Morpho, so a signer can approve a lending transaction on the hardware device without a browser extension in the middle. The loan and the direct connection landed on the same day, in the same app.

The follow-up on the same account is part of the announcement, and it is specific. Crypto Loan is subject to country availability. Ledger says it is a technology provider and does not give financial advice. Interest rates are variable and come from how full the underlying isolated lending markets are. Liquidation risks apply. None of that is a guess. It is the sentence Ledger posted under the launch, and it tells a reader what the product is willing to say about itself.

What comes next is the rest of the rollout. Ledger said the feature is rolling out now, and the place to look is the Ledger Wallet app. The October notes already put Morpho itself on the list of places a signer can reach, next to the loan. The post is the invitation. The loan a reader can simulate, and then approve on the Secure Screen, is the step that follows. Holders who wanted a way to use wrapped Bitcoin without sending it to a custodian now have that path opening inside the wallet that already keeps the keys.