Ledger adds Morpho-powered bitcoin loans to its wallet at TOKEN2049

• Ledger Wallet users can pledge cbBTC or wBTC as collateral and borrow USDC or USDT without moving assets to a custodian.
• Morpho supplies the lending markets and Yield.xyz runs the loan flow and position monitoring inside the app.
• It is the second Morpho-powered product in Ledger Wallet after its stablecoin Earn feature, and access is rolling out gradually to eligible users.

Hardware wallet maker Ledger announced the new Crypto Loan feature in its October Ledger Wallet release on the opening day of TOKEN2049 Singapore at Marina Bay Sands. Morpho confirmed the integration in a post on its own blog the same day, describing it as a way for self-custody users to borrow stablecoins against their bitcoin directly in the app.

Ledger brings bitcoin-backed borrowing into the wallet

The product targets a familiar problem for long-term bitcoin holders: needing cash without selling. Users deposit wrapped bitcoin, either Coinbase’s cbBTC or wBTC, as collateral and borrow dollar stablecoins against it. According to Ledger, users can simulate a loan before opening it, then track their loan-to-value ratio, add collateral or repay from the same screen.

Ledger says the rollout is gradual for eligible users, and that crypto transaction services come from third-party providers that may not be available in every jurisdiction. Reporting from crypto.news adds that direct access to Morpho is open to all users from October 7.

Morpho and Yield.xyz do the plumbing

Morpho provides the onchain credit markets where the loans actually live, while Yield.xyz handles the loan flow and monitoring that sits inside Ledger Wallet. Borrowing is noncustodial: Morpho says users keep control of their positions and can repay or withdraw collateral at any time as long as the position stays healthy.

Morpho co-founder Paul Frambot framed the launch as a pairing with Ledger Earn, the stablecoin yield product Ledger already runs on Morpho. In his words, the two together create “a powerful liquidity flywheel,” since stablecoins that Ledger users supply through Earn can fund loans taken by other Ledger users.

Self-custody is the selling point, and the risks stay with the user

Every loan action requires Clear Signing on the Ledger device’s secure screen, and private keys stay offline throughout. That is the pitch against centralized lenders, where borrowers hand collateral to a company. The trade-off is that the user carries the market risk directly. Interest rates are variable and set by utilization in the underlying Morpho markets, and positions can be liquidated if collateral value falls too far.

Ledger also used the release to unveil a limited Nano Gen5 Spurs Edition with the San Antonio Spurs, capped at 250 units.

The CCS read. Bitcoin-backed credit is moving from lender balance sheets onto open protocols, and Morpho is becoming the default rail. Coinbase has offered Morpho-powered bitcoin loans since early 2025, and Ledger now brings the same market structure to users who refuse to give up their keys. For institutions, the signal is distribution: Morpho now sits behind both the largest US exchange and the best-known hardware wallet brand, which deepens liquidity in its BTC markets and tightens the link between wrapped bitcoin supply and stablecoin demand. The open question is risk management at retail scale. Variable rates and automatic liquidations behave very differently from a fixed-term bank loan, and a sharp bitcoin drawdown like the one markets saw this week is exactly when that difference shows up.

Watch for how quickly Ledger widens eligibility, whether native bitcoin collateral follows the wrapped versions, and how Morpho’s cbBTC and wBTC markets handle utilization as new borrowers arrive. For context on institutional borrowing on the same protocol, see our report on Circle enabling institutional bitcoin borrowing via Morpho, and follow all our TOKEN2049 coverage.