Ledger and Morpho: Bitcoin-Backed Loans Bring DeFi Into Hardware-Wallet Workflows
DeFi lending is moving into interfaces that ordinary crypto holders already trust. On October 7, Ledger announced two related changes to its wallet experience: direct access to Morpho from Ledger Wallet and a gradual rollout of Crypto Loan, a borrowing product that lets eligible users pledge Bitcoin-linked tokens to borrow dollar stablecoins. According to Ledgers launch details reported by crypto.news, supported collateral includes cbBTC and wBTC, while loan proceeds can be USDC or USDT. Morpho supplies the decentralized lending infrastructure and Yield.xyz supports transaction construction and loan-position monitoring inside the Ledger experience. The bigger story is not that someone can borrow against Bitcoin. That has been possible for years. It is that a hardware-wallet company is making a multi-protocol lending workflow feel like a feature of a familiar wallet, while trying to improve what the user sees before authorizing a transaction.This Is Bitcoin-Linked Collateral, Not Native Bitcoin Lending on L1 The products name can obscure an important technical distinction. A Bitcoin holder may think the loan is secured by ordinary BTC sitting directly in a Bitcoin mainnet address. The announced collateral assets are cbBTC and wBTC, tokenized representations of Bitcoin that can interact with smart contracts on Ethereum-compatible networks. That introduces an additional dependency: BTC economic exposure → wrapped/tokenized





