Crypto Wallet Ledger Now Lets Users Borrow Stablecoins Against Their Bitcoin Without Giving Up Self-Custody

Ledger Launches Crypto Loan Feature Allowing Users to Borrow Stablecoins Against Bitcoin

Overview of Crypto Loan Feature

Ledger's new Crypto Loan feature allows users to borrow stablecoins against their Bitcoin without giving up custody of their assets. This service uses on-chain lending network Morpho and is integrated into the Ledger Wallet app.

How the Crypto Loan Works

Users can deposit wrapped Bitcoin as collateral and borrow USDC or USDT stablecoins directly inside the app. The service does not require users to give up custody of their assets and allows them to keep their Bitcoin exposure throughout the loan term.

Security and Governance

Morpho is an on-chain credit network that governs every interaction, and users' collateral stays on-chain. Each step of the loan, from approval to repayment and withdrawal, is confirmed on the screen of a Ledger hardware device.

Additional Features and Integrations

The app tracks each loan's loan-to-value ratio and allows users to add collateral, repay, borrow more, or withdraw at any time. Users can also simulate a loan before committing. Ledger is also adding direct access to Morpho's lending markets and curated vaults for depositing, borrowing, and earning across Ethereum and major layer-2 networks.

Limitations and Availability

Interest rates are variable, liquidation risks apply, and Crypto Loan is subject to country availability. Ledger acts only as a technology provider and does not give financial advice.