# Ledger adds Bitcoin-backed loans through Morpho Author: Abdullah Özkurt Language: English Published: 2026-10-08T13:33:46+03:00 Updated: 2026-10-08T14:09:36+03:00 ![Circuit board composition with a Bitcoin emblem, Ledger name and copper connections](https://kriptometa.com/uploads/ledger-bitcoin-teminatli-kredi-hizmetini-acti-028ff59f23f4_article.webp) ## Key takeaways - Four initial Ethereum markets accept cbBTC or wBTC as collateral. - Users can borrow USDC or USDT at rates that change with market utilization. - Collateral sits in smart contracts; hardware signing does not remove liquidation risk. Crypto Loan brings stablecoin borrowing against cbBTC and wBTC, Ethereum-based representations of Bitcoin, into Ledger Wallet through Morpho and Yield.xyz. Ledger has added Crypto Loan to Ledger Wallet for users seeking to borrow stablecoins without selling their Bitcoin-linked assets. In its October 7 announcement, the company said Morpho provides the lending infrastructure and Yield.xyz the app integration. The initial service accepts cbBTC and wBTC on Ethereum as collateral for USDC or USDT loans. The change described in [Ledger’s October release notes](https://www.ledger.com/blog-ledger-wallet-october-2026) brings loan creation and management into Ledger Wallet. Users can simulate a loan before signing, track loan-to-value, add collateral, borrow and repay from the app. Availability varies by country. ## Four markets use two representations of Bitcoin Ledger’s [product guide, updated on October 7](https://www.ledger.com/academy/defi-borrowing-or-how-to-get-liquidity-without-selling-your-crypto), lists four initial markets: cbBTC/USDC, cbBTC/USDT, wBTC/USDC and wBTC/USDT. The first asset is the collateral and the second is the borrowed stablecoin. Native BTC on the Bitcoin network cannot be deposited directly. cbBTC and wBTC represent Bitcoin on Ethereum. Moving from native BTC introduces a conversion step and the custody arrangements behind the chosen token. Borrowers retain exposure to [Bitcoin’s price](https://kriptometa.com/en/markets/bitcoin) while taking on the risks of that representation and the lending contract. Keeping the exposure does not mean retaining unrestricted access to the collateral: it is held in the contract to secure the debt. > Ledger described Crypto Loan as “Rolling out now” in its October 7 announcement on X. [Ledger’s Crypto Loan announcement](https://x.com/Ledger/status/2107848432412967383) ## The borrowing rate can change during the loan The loans do not carry a fixed rate for a promised term. Ledger says rates vary with utilization in the underlying Morpho market: how much of its available lending capital has been borrowed. A rate displayed when a position opens is not a commitment to the same borrowing cost throughout its life. [Morpho Blue’s documentation](https://docs.morpho.org/learn/concepts/blue/) explains that each market pairs one collateral asset with one loan asset. Its liquidation threshold, price oracle and interest-rate model are selected when the market is created. Fixed market parameters do not mean a fixed interest rate; the rate is calculated by the chosen model. Repaying part of the debt or supplying more collateral lowers loan-to-value. Taking on more debt or withdrawing collateral depends on the remaining position meeting the market’s limits. [Collateral and liquidation monitoring](https://kriptometa.com/en/defi-collateral-liquidation-monitoring) therefore continues throughout the position, rather than ending when the loan is signed. ## A hardware wallet cannot stop liquidation Ledger’s device keeps [private keys](https://kriptometa.com/en/glossary/private-key) offline when users authorize transactions. The company says approvals, collateral deposits, borrowing, repayment and withdrawals can be reviewed on the device screen and physically signed. Protecting those keys does not change the lending conditions enforced on-chain. **A fall in collateral value increases the weight of the debt.** When Bitcoin-linked collateral loses value, the same debt produces a higher loan-to-value ratio. A position above the market’s liquidation threshold can be liquidated without waiting for a new signature from the borrower. On Morpho, third parties can repay part of an eligible position’s debt in exchange for discounted collateral. Using a hardware wallet does not remove price declines, faulty price data or smart-contract vulnerabilities. The service makes the loan manageable from a wallet interface; it does not eliminate the possibility of loss. Ledger’s [short Crypto Loan video dated October 6, 2026](https://www.youtube.com/watch?v=HIW14PjFTGM) introduces the product. The recording was published before the October 7 written announcement.