Ledger Launches Bitcoin-Backed Loans Across Four Ethereum Markets Powered by Morpho

Ledger has introduced a new Crypto Loan feature enabling users to borrow stablecoins against wrapped Bitcoin collateral directly within its wallet interface. The service launched with four initial Ethereum-based markets where users can pledge Wrapped Bitcoin (wBTC) or Coinbase Wrapped BTC (cbBTC) to borrow USD Coin (USDC) or Tether (USDT). Powered by Morpho lending infrastructure and integrated via Yield (Yield.xyz), transactions require hardware clear-signing approval. However, deposited collateral is locked in smart contracts and remains exposed to automatic liquidation by external liquidators if loan-to-value thresholds are breached.