Ledger has launched Crypto Loan, a self-custody lending feature enabling users to collateralize wrapped Bitcoin (cbBTC or wBTC) to borrow USDC or USDT directly from their Ledger Wallet. The service allows borrowers to access stablecoin liquidity without transferring funds to centralized platforms or selling their Bitcoin holdings. All loan operations, including opening positions, adjusting collateral, and repayment, require physical confirmation on a Ledger signing device for security. The feature is powered by the decentralized credit network Morpho with technology provided by Yield.xyz, which also supplies Coinbase’s Bitcoin-collateralized loans. Ledger signing devices can now connect directly to Morpho without browser extensions or third-party software wallets. Morpho co-founder Paul Frambot stated the integration creates a liquidity flywheel, as stablecoins deposited through Ledger’s existing Earn product can fund loans for Bitcoin holders.