Ledger Adds Native Loan Functionality to Wallet App
Users can now borrow stablecoins against wrapped Bitcoin collateral directly from their Ledger interface.
Updated on Oct. 21, 2026 in Corporate Finance
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Ledger has integrated a new crypto-backed loan feature into its wallet application, allowing users to borrow USDC or USDT on Ethereum. This service enables holders to pledge Bitcoin-based collateral directly within the Ledger interface.
Why it matters
The integration streamlines decentralized finance operations by allowing users to manage borrowing and collateral positions within a single wallet interface rather than navigating multiple DeFi dashboards.
The new feature supports 4 distinct Ethereum-based loan pairings compared to the prior state where no native borrowing was available. The service follows Ledger's 2025 launch of its Stablecoin Earn tool.
The players
Ledger
A developer of hardware cryptocurrency wallets that enable cold storage and manage digital asset signing.
Morpho
A lending protocol that manages smart contracts, accounting, and position liquidations for decentralized finance.
The details
Users initiate loans by selecting a collateral and loan pair, specifying the amount, and setting a loan-to-value ratio. Once authorized via the hardware wallet, collateral is locked into smart contracts managed by Morpho. If loan-to-value thresholds are exceeded, these contracts automatically trigger liquidations to satisfy the debt.
Timeline
2025: Ledger launched the Stablecoin Earn feature.
October 7, 2026: Crypto Loan functionality was mentioned in release notes.
October 21, 2026: The Crypto Loan feature was officially rolled out.
Market Landscape
This integration follows Ledger's 2025 introduction of the Stablecoin Earn feature. It reflects a broader trend of hardware wallet providers shifting from passive yield products to active credit-based borrowing services.
Operators currently holding Bitcoin should monitor the variable interest rates associated with these loans to gauge debt-servicing costs against potential asset appreciation. Before pledging assets, ensure all internal accounting reflects that collateral is held in third-party smart contracts.
The takeaway
The addition of native loan functionality removes the friction of switching between external DeFi dashboards, though it introduces new smart-contract risk through automatic liquidation protocols. Operators should track these borrowing costs as an alternative to traditional capital-raise methods.
Further reading
For broader trends in asset management infrastructure, see Corporate Finance.
Source note: This article includes information reported by The Cryptonomist.
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