Ledger, the crypto hardware wallet maker, has introduced a new feature that allows users to borrow stablecoins against their Bitcoin (BTC) without relinquishing custody of their assets.
The latest Crypto Loan feature enables Ledger Wallet users to deposit wrapped Bitcoin as collateral and borrow USDC or USDT stablecoins directly within the app, as mentioned by Ledger.
This service is made possible by the on-chain lending network Morpho and integrated into the app through Yield.xyz.
Users have the option to use cbBTC or wBTC as collateral and retain their Bitcoin exposure throughout the loan period, rather than selling their holdings.
According to Ledger’s recent release notes,
“Morpho is an on-chain credit network; the smart contracts govern every interaction, and your collateral stays on-chain rather than sitting on someone else’s balance sheet.”
Every stage of the loan process, from approval to repayment and withdrawal, must be confirmed on the screen of a Ledger hardware device, which displays each contract function in clear language.
The app also monitors the loan-to-value (LTV) ratio for each loan and allows users to add collateral, repay, borrow more, or withdraw at any time, with the option to simulate a loan before committing.
Additionally, Ledger is introducing direct access to Morpho’s lending markets and curated vaults for depositing, borrowing, and earning on Ethereum (ETH) and major layer-2 networks.
Ledger notes that interest rates are variable, liquidation risks exist, and the availability of Crypto Loan is subject to the user’s country regulations.
Ledger emphasizes that it solely acts as a technology provider and does not provide financial advice.
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