Bitcoin holders who want liquidity without selling have had two options: move collateral to a centralized platform, or navigate DeFi tools built for advanced users. Neither of these options fit for users who prioritize self custody on a hardware device.
Accessing liquidity shouldn't require sacrificing security. Ledger Wallet is closing that gap with Crypto Loan, a new feature that lets eligible users borrow USDC or USDT against cbBTC or wBTC directly in the app, powered by Morpho via Yield.xyz.
Every key action is Clear Signed on a Ledger signer before approval. Custody never leaves the user and all transactions are executed directly from their device.
How Crypto Loan Works
Users set a borrow amount and a target loan-to-value ratio. Yield.xyz's API constructs the transaction and confirms the user holds enough collateral to meet that ratio before anything is signed.
From there, the flow is two transactions: supply cbBTC or WBTC as collateral, then borrow USDC or USDT against it. Both are Clear Signed on the Ledger signer before submission, so the collateral stays self-custodied and the loan is issued onchain.
Once a position is open, users can manage it directly in Ledger Wallet: supply more collateral, withdraw collateral, borrow more, or repay and withdraw.
Monitoring a Position
Yield.xyz's API surfaces live position data throughout the life of the loan: loan-to-value ratio, the amount available to borrow, and the liquidation threshold, all scoped to the specific market and position. Ledger uses this data to let users track their position and manage repayment around their own targets and timelines, rather than checking a block explorer or a separate Morpho interface.
Security
Crypto Loan runs on the same security model as every other Ledger Wallet feature. Every key action, from the first collateral deposit to a final repayment, is Clear Signed on the Ledger signer before it executes. The signer translates each transaction into plain language before the user approves it, and private keys never leave the device.
Powered by Morpho via Yield.xyz
Morpho powers the underlying lending markets: the interest rate borrowers pay and the market's collateral parameters are set by Morpho's infrastructure. Yield.xyz is the technical layer connecting Ledger Wallet to Morpho, constructing transactions and surfacing live position data through the same API Ledger already uses for its Perps trading and onchain Earn.
Crypto Loan extends the existing partnership between Ledger and Yield.xyz into borrowing: two different user needs, one integration.
Getting Started
Crypto Loan has rolled out to select Ledger Wallet users on October 7, with broader availability in the weeks to come. Availability may vary by jurisdiction. Users can simulate a Crypto Loan in the app to review terms before opening a position.
Build with Yield.xyz: docs.yield.xyz/docs/borrow-api
Crypto Loan is powered by Morpho and integrated via Yield.xyz. Subject to country availability. Ledger is a technology provider and does not provide financial advice. Interest rates are variable and determined by the utilization of underlying isolated lending markets. Liquidation risks apply. Learn more here.