Ledger launched Crypto Loan on Wednesday at the TOKEN2049 conference in Singapore, a self-custodial lending feature that lets eligible users pledge wrapped Bitcoin as collateral to borrow USDC or USDT without selling their coins or moving funds to a centralized platform.

The feature accepts cbBTC or wBTC as collateral and runs entirely inside Ledger's wallet app. Users can open and manage loans, track their loan-to-value ratio, add collateral, repay, or borrow more — with every key action physically approved on a Ledger hardware signer before it executes.

Who provides the infrastructure?

Morpho, the decentralized credit network, powers the product through technical provider Yield.xyz — the same provider Coinbase uses for its own Bitcoin-backed loans. Ledger also announced direct access for its signers to Morpho, allowing users to connect a hardware device to the protocol without routing through browser extensions or software wallets.

Morpho co-founder Paul Frambot said the integration creates "a powerful liquidity flywheel": stablecoins deposited through Ledger's existing Earn product can fund the very loans Bitcoin holders now take out.

Why is Ledger moving into lending?

The launch pushes Ledger, best known for its hardware wallets, deeper into financial services and into a fast-growing Bitcoin-lending market. Coinbase recently rolled out fixed-rate Bitcoin-backed loans after expanding the product to U.K. users, while JPMorgan has explored lending against Bitcoin and Ethereum.

The appeal across these products is consistent: holders who expect their crypto to appreciate can borrow against it rather than trigger a taxable sale. The risk is equally familiar — a sharp price drop can force liquidation of the pledged collateral.

For Ledger, the operational consequence is significant. The company says it secures nearly 30% of all Bitcoin held by retail investors, and lending gives that user base a reason to keep assets inside the Ledger ecosystem rather than bridging to centralized platforms. The direct Morpho integration also removes a friction point that previously required browser extensions or intermediary software wallets.

What else did Ledger announce?

The company used the Singapore stage to unveil a limited-edition Nano Gen5 signer made with the NBA's San Antonio Spurs. The 250-unit run extends a marketing deal with the Spurs announced last year.

Crypto Loan begins rolling out to eligible users immediately, with availability expanding over time.