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 contract function in plain language.

The app also tracks each loan’s loan-to-value (LTV) ratio and lets users add collateral, repay, borrow more or withdraw at any time, with an option to simulate a loan before committing.

Ledger is also adding direct access to Morpho’s lending markets and curated vaults for depositing, borrowing and earning across Ethereum (ETH) and major layer-2 networks.

The company says interest rates are variable, liquidation risks apply and Crypto Loan is subject to country availability.

Ledger says it acts only as a technology provider and does not give financial advice.

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