Ledger Launches Bitcoin Loans Powered by Morpho Protocol

Bitcoin loans — Hardware wallet maker Ledger has launched a new service allowing Bitcoin holders to borrow stablecoins against their BTC without selling it or relinquishing control of their private keys.

The feature, called Ledger Crypto Loans, was unveiled at the TOKEN2049 conference in Singapore. It is powered by the decentralized finance (DeFi) lending protocol Morpho. Users can deposit wrapped Bitcoin (WBTC) as collateral to borrow USD Coin (USDC), with the entire loan origination and management process accessible directly through the Ledger Live application.

A key security claim of the service is that users retain custody of their private keys at all times, with final transaction approvals required directly on their Ledger hardware device. This aims to mitigate the counterparty risk associated with leaving assets on a centralized lending platform.

The launch represents a significant move by a major custody provider deeper into the DeFi ecosystem, offering its users a yield-bearing alternative to simply holding Bitcoin. It provides a capital-efficient way for long-term holders to access liquidity while maintaining exposure to potential BTC price appreciation.