Lido and Ledger expand crypto lending capabilities via Morpho

Lido contributors have proposed the creation of Lido Lend, a specialized decentralized lending market scheduled for a potential 2026 launch. The proposal, which requires Lido DAO approval, utilizes a modified Morpho Blue design to create isolated markets focused on blue-chip assets and correlated pairs like stETH and Ether. The system aims to provide predictable exit routes during market stress and includes deposit screening to prevent bad collateral from entering the protocol.

In a separate development, Ledger has launched Crypto Loan, a self-custodial feature within its wallet app. Unveiled at the TOKEN2049 conference, the service allows users to pledge wrapped Bitcoin (such as cbBTC or wBTC) as collateral to borrow stablecoins like USDC or USDT. The feature is powered by the Morpho decentralized credit network via Yield.xyz and allows users to manage loans directly on their hardware devices without relying on browser extensions.