Ledger crypto loans bring stablecoin borrowing to its wallet, with liquidation risk

Crypto-backed loans from Ledger are now integrated directly into the Ledger Wallet app, enabling qualifying users to use wrapped Bitcoin as collateral for stablecoin borrowing via Morpho. Ledger said on October 21 that its Crypto Loan feature was rolling out, bringing borrowing and position management into the wallet interface—but leaving collateral subject to smart-contract liquidation rules. Key takeaways Borrowers can pledge cbBTC or WBTC for USDC or USDT on Ethereum. Ledger provides the interface, while Morpho contracts manage loans. Hardware signing does not block collateral liquidation.

Source: The Cryptonomist