Crypto Wallet Ledger Now Lets Users Borrow Stablecoins Against Their Bitcoin Without Giving Up Self-Custody
Crypto hardware wallet maker Ledger is rolling out a new feature that lets users borrow stablecoins against their Bitcoin (BTC) without giving up custody of their assets. The new Crypto Loan feature lets Ledger Wallet users deposit wrapped Bitcoin as collateral and borrow the dollar-pegged stablecoins USDC or USDT directly inside the app, says Ledger. The service is powered by the on-chain lending network Morpho and plugged into the app through Yield.xyz. Users can post either cbBTC or wBTC as collateral and keep their Bitcoin exposure for the life of the loan instead of selling their holdings. Says Ledger in its latest release notes, “Morpho is an onchain credit network; the smart contracts govern every interaction, and your collateral stays on-chain rather than sitting on someone else’s balance sheet.” Every step of the loan, from the first approval to repayment and withdrawal, has to be confirmed on the screen of a Ledger hardware device, which shows each ...