Ledger launches bitcoin-backed loans through Morpho in its wallet app

Ledger launches bitcoin-backed lending service through Morpho

Ledger has introduced bitcoin-based lending capabilities in its wallet app, allowing eligible users to mortgage cbBTC or wBTC to obtain USDC or USDT loans. The feature, called "Crypto Loan", supports two bitcoin mortgage tokens and allows borrowing from USDC or USDT. Ledger pointed out that loan interest rates will change based on the use of the lending market, and borrowers face liquidation risks.

Morpho Direct Access allows users to approve loan transactions through Ledger hardware. In addition, a customized version of the Spurs hardware device priced at 199 euros and limited to 250 units has been released, and its U.S. sales are limited to parts of Texas.

Progressive promotion and self-hosting concept

Ledger stated in a press release on October 7 that "Crypto Loan" will be gradually opened to eligible Ledger Wallet users after its debut on TOKEN2049 Singapore. The company describes this feature as a way to borrow stablecoins using bitcoin-related assets as collateral without selling bitcoin or depositing collateral on a centralized lending platform.

Ledger also announced that Ledger hardware users can now access Morpho directly. Meanwhile, Ledger showed off a limited edition San Antonio Spurs-themed device. The company said that the availability of the lending feature will depend on the country/region the user is located in, and access rights will gradually expand.

Collateral and Operating Process

Under the arrangements outlined by Ledger, borrowers can pledge Coinbase Wrapped Bitcoin (cbBTC) and Wrapped Bitcoin (wBTC) to obtain USDC or USDT. Morpho provides decentralized lending infrastructure, while Yield.xyz handles the loan process and position monitoring internally within Ledger Wallet.

Ledger said that within the app, users can open loans, check loan-to-value ratios (LTV), add collateral, and repay debts. The interface also provides more operational options such as borrowing and withdrawing qualified collateral. Before formally applying for a loan, eligible users can run a simulation to explore available options. Critical transactions will use Ledger's Clear Signing feature and require physical approval on the hardware device before execution.

Ledger's terms stipulate that interest rates are determined by the utilization rate of the underlying segregated lending market. The company clearly identified liquidation risks and emphasized its positioning as a technology provider rather than a financial adviser. Ledger describes this setting as a "self-managed" mode, where private keys are stored offline by the hardware device, and transaction approval rights are still in the hands of the user. This architecture distinguishes the wallet interface that handles access and loan management from the signer that is used for authorization operations.

Morpho Access and Hardware Licensing

In addition to in-app lending capabilities, Ledger said its direct connection to Morpho will be available to all users on October 7. According to the company, the connection allows users to access decentralized applications using the Ledger signer without first using a browser wallet extension or a separate software wallet.

Ledger stated that for Morpho users, this integration supports borrowing through a direct hardware connection. High-value operations, including Morpho Vault approvals, will use clear signatures and hardware-based authorizations.

Morpho co-founder Paul Frambot said the lending service will coexist with Ledger Earn, which also leverages Morpho's technology. "Crypto Loan now complements Ledger Earn, both driven by Morpho, creating a strong liquidity flywheel within Ledger Wallet: stablecoins deposited through Earn can fund loans received by Bitcoin holders through Crypto Loan, all in the same self-managed environment."

On the technical level, Yield.xyz CEO Serafin Lion Engel said that this integration provides transaction construction and position monitoring functions, avoiding the need for Ledger to develop these functions itself. Engel described the arrangement as "the integrated model we built for www.example.com." Yield.xyz Ledger's press release also mentioned that its devices protect nearly 30% of the bitcoins held by retail investors. The company reports that it has sold more than 8 million signers in more than 165 countries and supports more than 10 languages.

Industry Background and Other Products

As early as September 22, Coinbase mentioned the introduction of fixed-rate cbBTC loans on the Base chain through Morpho Midnight. Coinbase said customers can choose interest rates and maturity dates when accepting loan quotes, while also retaining existing floating rate lending services. At the time, Coinbase's floating-rate products had more than $1.4 billion in outstanding loans and were guaranteed by approximately $3 billion in collateral. These numbers cover lending made through the Coinbase interface, not all Morpho integrations.

For eligible U.S. borrowers, the report describes Coinbase's previous roll-out in most U.S. states (except New York). Coinbase converts pledged bitcoins into cbBTC and sends it to a Morpho smart contract on Base; the company says cbBTC is backed one-on-one by the bitcoins it holds.

On July 31, Uniswap announced the launch of a Morpho-powered lending vault through its Earn product to support USDC, USDT and ETH deposits on the Ethereum main network. According to Uniswap's release statement, users can access the service through their web apps and wallets, and there is no mandatory lock-in or cooling-down period. In this setup, Morpho provides lending infrastructure, Gauntlet plans the treasury, and the interest paid by the borrower generates a return on the deposit. Uniswap said it will not charge additional Earn fees, but users will still have to bear the cost of Ethereum transactions.

Spurs Limited Edition Release Details

In a separate hardware announcement, Ledger said it would produce 250 Nano Gen5 Spurs limited edition equipment, priced at 199 euros each. The company says it is the first signature device it has created for San Antonio Spurs fans and the first such official NBA licensing agreement.

According to Ledger, each unit includes a Nano Gen5 engraved with logos, customized Spurs packaging, exclusive Spurs badges and a $20 Bitcoin voucher. The release coincides with the first anniversary of the cooperation between the two companies.

According to the announced timetable, Ledger stated that the device will debut at TOKEN2049 in Singapore from October 7 to 8, and will subsequently be available on October 15 at Ledger Op3n in Paris. Another sale is scheduled for October 20 in San Antonio to celebrate the Spurs 'NBA season opener.

Frank Miceli, chief commercial officer of the Spurs, said the partnership allows fans to express support in another way through team-branded products. He added that both sides will continue to explore ways to connect with Spurs fans.

Authorized sales are limited to Singapore, Paris and Texas (excluding Dallas and Houston) based on NBA licensing restrictions described by Ledger. Online purchases through Ledger.com are limited to customers located in selected Texas areas, and the company says the version will not be sold in other parts of the United States or Canada.