To maintain self-custody, private keys remain on the users' hardware wallets while the Bitcoin collateral is transferred into smart contracts. These loans are subject to a liquidation threshold of 86% loan to value, at which point the collateral is sold to cover the debt.
Tuesday, October 20, 2026
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Ledger Launches Bitcoin Backed Loans With 86% LTV Limit
Crypto13 days ago
The company's wallet app now offers a borrowing feature that allows holders of wrapped Bitcoin to obtain liquidity in the form of USDC or USDT without selling their assets. This lending service, known as Crypto Loan, is powered by Morpho via Yield.xyz and enables users to pledge wrapped BTC as collateral.
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