Ledger launched Crypto Loan on Wednesday, October 7, 2026 allowing eligible users to borrow Circle’s USDC or Tether’s USDT against cbBTC or wBTC.
Ledger unveiled the service at TOKEN2049 Singapore and will gradually expand access.
Meanwhile, availability will depend on the user’s country as Ledger broadens the rollout.
The service lets users access stablecoin liquidity without selling their Bitcoin-linked assets.
Morpho will provide the decentralised lending infrastructure, while Yield.xyz will manage the loan flow and monitor positions.
Before borrowing, users can also simulate loan options through Ledger Wallet.
After opening a loan, users can check their loan-to-value ratio through Ledger Wallet.
They can add collateral, repay debt, borrow more, or withdraw eligible collateral through the same interface.
The borrowing terms also carry liquidation risks when collateral values fall.
A sharp decline in the value of cbBTC or wBTC can weaken a borrower’s position.
Ledger Keeps Loan Approvals on Its Hardware Devices
Ledger requires users to approve key Crypto Loan transactions through their physical hardware devices.
Ledger Wallet will manage loan positions, while the hardware device will authorise transactions before they execute. This process keeps transaction approval with the user.
Ledger’s Clear Signing feature displays transaction details before users approve key actions.
Users can review those details before their devices authorise the requested blockchain transaction.
The crypto wallet provider will also keep private keys on the hardware device while users manage their loans.
At the same time, the wallet issuer will give hardware users direct access to Morpho through its wallet.
Users can connect their Ledger signers to Morpho without browser extensions or separate software wallets.
The connection will support lending and borrowing through the hardware device.
Morpho co-founder Paul Frambot said Crypto Loan will complement Ledger Earn, which already uses Morpho.
Ledger Earn allows users to access Morpho-based earning services through the same wallet ecosystem.
Yield.xyz will also handle transaction construction and position monitoring for the new integration.
Ledger says its devices secure almost 30% of Bitcoin held by retail investors. The company also reported more than eight million signers sold across more than 165 countries.
Bitcoin Loan Launch Comes With Collateral Risks
Crypto Loan uses Bitcoin-linked assets as collateral, so borrowers remain exposed to changes in their value.
If collateral falls sharply, borrowers may need to add more assets to protect their positions. The crypto wallet provider provides loan-to-value information so users can track their positions inside the wallet.
However, borrowing costs can also change because Ledger will use variable interest rates.
The rates will depend on utilisation within the isolated lending markets supporting the loans.
Borrowers will therefore need to manage both collateral levels and changing interest costs.
Coinbase had already expanded Bitcoin-backed lending through Morpho before Ledger launched Crypto Loan.
In September 2026, Coinbase introduced fixed-rate cbBTC loans through Morpho Midnight on Base.
Its existing variable-rate product had more than $1.4 billion in outstanding loans backed by roughly $3 billion in collateral.
Unlike Ledger’s variable-rate loans, Coinbase’s fixed-rate product lets borrowers choose an interest rate and maturity.
