Now #Ledger has just launched Crypto Loan inside Ledger Wallet.
You put up cbBTC or wBTC as collateral and borrow $USDC or $USDT without selling your Bitcoin. It was unveiled at TOKEN2049 Singapore.
Morpho provides the credit market; Yield xyz integrates the position into the app, and users sign off on every step using their hardware device.
This isn’t native Bitcoin.
The collateral is wrapped BTC (Coinbase’s cbBTC or wBTC). The actual BTC isn’t part of the loan—a representation of it on Ethereum is.
The signing still happens on the Ledger, but once deposited, the collateral is held in Morpho’s contracts, not on the device.
The risks are the usual ones.
These markets liquidate at 86% LTV. If Bitcoin falls and you cross that threshold, your position is liquidated and you lose some of your collateral at a discount.
The interest rate is variable and depends on market utilization. In the app, you can simulate a loan, view your LTV, add collateral, repay, or borrow more.
The rollout is gradual and depends on the country.
Ledger isn’t the lender; credit comes from Morpho’s markets. This is Morpho’s second product on Ledger, after Earn.
Paul Frambot pitched it as a flywheel: Earn’s stablecoins can fund these loans, providing liquidity against Bitcoin without selling it—with liquidation, variable rates, and wrapper risk.
You put up cbBTC or wBTC as collateral and borrow $USDC or $USDT without selling your Bitcoin. It was unveiled at TOKEN2049 Singapore.
Morpho provides the credit market; Yield xyz integrates the position into the app, and users sign off on every step using their hardware device.
This isn’t native Bitcoin.
The collateral is wrapped BTC (Coinbase’s cbBTC or wBTC). The actual BTC isn’t part of the loan—a representation of it on Ethereum is.
The signing still happens on the Ledger, but once deposited, the collateral is held in Morpho’s contracts, not on the device.
The risks are the usual ones.
These markets liquidate at 86% LTV. If Bitcoin falls and you cross that threshold, your position is liquidated and you lose some of your collateral at a discount.
The interest rate is variable and depends on market utilization. In the app, you can simulate a loan, view your LTV, add collateral, repay, or borrow more.
The rollout is gradual and depends on the country.
Ledger isn’t the lender; credit comes from Morpho’s markets. This is Morpho’s second product on Ledger, after Earn.
Paul Frambot pitched it as a flywheel: Earn’s stablecoins can fund these loans, providing liquidity against Bitcoin without selling it—with liquidation, variable rates, and wrapper risk.