Ledger Lets Users Borrow Stablecoins Against Wrapped Bitcoin From Inside Their Wallets

Published October 9, 2026, 02:20 UTC. Ledger announced Crypto Loan on Oct. 7, 2026.

Ledger, the hardware wallet maker, launched a feature called Crypto Loan on October 7 that lets eligible users borrow stablecoins against wrapped Bitcoin without leaving Ledger Wallet, the company announced. The product, unveiled at the TOKEN2049 conference in Singapore, pushes Ledger from pure storage into decentralized lending at a moment when borrowing against Bitcoin has become a standard way for long-term holders to get cash without selling.

cbBTC and wBTC in, USDC and USDT out

Borrowers pledge wrapped Bitcoin, either Coinbase's cbBTC or the older Wrapped Bitcoin (wBTC), as collateral and take out loans in USDC or USDT directly inside Ledger Wallet, according to the company's release notes, as reported by Blockchain Reporter. The collateral sits in on-chain lending markets rather than on a custodian's balance sheet, so the coins stay within the crypto system while the borrower spends the stablecoins.

Morpho runs the loans, Yield.xyz runs the wiring

The lending itself happens on Morpho, a decentralized lending protocol built on Ethereum, with the technical integration handled by Yield.xyz, according to Blockchain Reporter and The Bit Gazette. The collateral flows into Morpho's smart contracts, which manage borrowing, interest accounting and liquidations, Bitcoin Insider reported. Yield.xyz is also the supplier behind Coinbase's Bitcoin mortgage loans, Cointime reported, which puts Ledger's launch in the middle of a broader industry shift: Coinbase has rolled out fixed-rate Bitcoin mortgage loans after expanding to UK users, and JPMorgan is exploring Bitcoin and Ether mortgage lending, Cointime reported.

Every key step needs the device in your hand

Ledger's version keeps the hardware wallet at the center of the flow. Every key step in the loan lifecycle requires physical approval on a Ledger signer, and the company's Clear Signing feature translates contract functions into plain language on the device's screen so users can see exactly what they are approving, Blockchain Reporter said. The wallet also tracks loan-to-value ratios natively, lets users add collateral, repay, borrow more or withdraw at any stage, and can simulate a loan before the user commits, the release notes said. Ledger also said its signing devices can now connect directly to Morpho without browser plugins or software wallets, The Bit Gazette reported.

A flywheel between savers and Bitcoin borrowers

Morpho co-founder Paul Frambot described the relationship as a potential "powerful liquidity flywheel," The Bit Gazette reported: stablecoins supplied through Ledger's existing Earn products could fund the loans taken out by Bitcoin holders, linking savers chasing yield with borrowers looking for cash. Ledger says it protects nearly 30 percent of the Bitcoin held by retail investors, Cointime reported, which gives the company a large installed base to sell the feature to. The rollout began on October 7 and expands over time, with availability depending on the user's country, Altcoin Buzz reported.

This article is news reporting and is not investment advice.

Sources

• Ledger Crypto Loan announcement (Oct. 7, 2026; unveiled at TOKEN2049, Singapore), primary source
• Blockchain Reporter, Ledger Launches Bitcoin-Backed Crypto Loan (Oct. 7, 2026), secondary source
• Altcoin Buzz, Ledger Opens Bitcoin-Backed Loans Inside its Wallet (Oct. 7, 2026), secondary source
• Bitcoin Insider, Ledger Adds Bitcoin-Backed Loans, With Collateral Moving Into Morpho (Oct. 7, 2026), secondary source
• The Bit Gazette, Ledger unveils crypto loans at TOKEN2049 (Oct. 7, 2026), secondary source
• Cointime, Ledger Launches Bitcoin Lending Feature, Users Can Mortgage BTC to Borrow Stablecoins (Oct. 7, 2026), secondary source