# Ledger Launches Bitcoin-Backed Loans Through Morpho Markets

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/27319
Published: 2026-10-07T09:05:30.000Z
Updated: 2026-10-07T09:05:30.000Z
Section: Business

> Eligible Ledger Wallet users can borrow USDC or USDT against cbBTC and WBTC while approving transactions on Ledger hardware devices.

Ledger launched a loan feature that lets eligible Ledger Wallet users borrow stablecoins against wrapped Bitcoin representations without selling their holdings, bringing Morpho lending markets into the hardware wallet’s application.

The service accepts wrapped representations of Bitcoin (BTC), including cbBTC and WBTC, as collateral. Borrowers can receive USD Coin (USDC) or Tether (USDT) and manage positions inside Ledger Wallet by monitoring loan-to-value ratios, adding collateral, repaying loans and borrowing more.

The service uses Morpho lending markets through Yield.xyz. Users still approve the final transactions with a Ledger hardware signer, keeping transaction authorization on the device.

Ledger unveiled the feature Oct. 7 at TOKEN2049 Singapore, which is scheduled for Oct. 7-8 at Marina Bay Sands.

The USDC-cbBTC and USDT-WBTC markets each have an 86% liquidation loan-to-value ratio. LLTV, or liquidation loan-to-value, sets the maximum borrowing level relative to collateral. Borrowing rates vary by market.

The collateral consists of tokenized Bitcoin representations used in Ethereum-based lending markets rather than native Bitcoin held directly on the Bitcoin network. Borrowers maintain exposure to Bitcoin while receiving stablecoins, but a decline in collateral value can put a position at risk of liquidation. Maximum loan-to-value levels and borrowing rates vary by asset, network and market conditions.

Morpho had $5.63 billion in outstanding loans and $16.94 billion in total deposits on Oct. 7. The figures were recorded as of Oct. 7 in UTC. An earlier Ledger integration for in-app stablecoin yield had recorded more than $100 million in USDC and USDT deposits.

The launch adds a Bitcoin-backed borrowing option to Ledger Wallet while relying on Morpho’s existing lending markets and wrapped Bitcoin assets on Ethereum.