Ledger Launches Bitcoin-Backed Loans Through Morpho for…
By Karthik Subramanian
AI summary of the source article
Ledger has launched Crypto Loan inside its Ledger Wallet application, enabling eligible users in supported jurisdictions to borrow stablecoins without liquidating their Bitcoin exposure. Powered by Morpho's decentralized lending infrastructure and integrated via Yield.xyz, the feature lets users pledge cbBTC or WBTC to borrow USDC or USDT. Ledger's hardware devices handle transaction authorization via Clear Signing technology while keeping private keys offline. Reported initial markets feature an 86% liquidation loan-to-value threshold. The rollout broadens Ledger's business beyond hardware wallets into self-custody decentralized finance services.
Why it matters
The feature allows hardware wallet users to access decentralized liquidity and manage collateral directly within a self-custody interface, without needing third-party browser extensions.
Key facts
- Users can deposit cbBTC or WBTC as collateral to borrow USDC or USDT with an initial 86% liquidation loan-to-value threshold.
- Ledger does not act as the lender; it connects users to Morpho's onchain lending markets via technology provider Yield.xyz.
- Morpho reported around $16.94 billion in deposits and $5.63 billion in outstanding loans as of October 7.