Ledger Launches Bitcoin Lending Feature for Self-Custody Users
Written with artificial intelligence.
Ledger has introduced a self-custody lending feature called Crypto Loan at the TOKEN2049 conference, allowing eligible users to collateralize wrapped Bitcoin (cbBTC or wBTC) to borrow stablecoins (USDC or USDT) directly from their Ledger Wallet. The system, supported by Morpho's decentralized credit network, requires physical confirmation via Ledger's signing device for key transactions.
New Lending Feature
On October 7, 2023, Ledger announced the launch of its self-custody lending feature, Crypto Loan, during the TOKEN2049 conference. This innovative service enables qualified users to collateralize wrapped Bitcoin (cbBTC or wBTC) within the Ledger Wallet to borrow stablecoins such as USDC or USDT, eliminating the need to transfer funds to centralized lending platforms or sell their holdings.
Key Features
Users can manage their loans directly within the wallet, tracking important metrics like loan-to-value ratio, adding collateral, making repayments, or increasing their borrowing amount. Notably, all significant actions must be physically confirmed through Ledger's signing device before execution, ensuring enhanced security for users.
Technical Support
The Crypto Loan feature is powered by the decentralized lending network Morpho, with Yield.xyz serving as the technical provider. Yield.xyz is also known for supplying Bitcoin collateral loans to Coinbase. Furthermore, Ledger's signing devices can now connect directly to Morpho, eliminating the need for browser plugins or software wallets. Paul Frambot, co-founder of Morpho, stated that this integration creates a "powerful liquidity flywheel," allowing stablecoins previously deposited into Ledger's Earn products to fund current loans for Bitcoin holders.