Ledger takes a bold step in its expansion strategy beyond asset custody. The French hardware wallet manufacturer rolls out an initial version of a feature called “BTC yield,” allowing users to generate a bitcoin-related yield directly from the Ledger Wallet application, through integrations with Lombard and Figment.
Making Bitcoin Work Without Selling It
Until now, bitcoin holders faced a limited choice: either hold the asset without yield or expose it to lending solutions, often centralized, with high risks. Ledger’s proposal aims to bridge this gap by providing access to LBTC, a token backed by bitcoin and designed for use in decentralized finance.
Concretely, the user deposits their BTC via Ledger Wallet, which is then converted into LBTC. This token generates a bitcoin-denominated yield by participating in third-party economic security mechanisms and network validation, orchestrated by Figment through the Babylon protocol. It is not Bitcoin staking itself, which is not possible, but an indirect model based on the use of BTC as economic collateral.
An Attempt to Activate a Widely Dormant Capital
Ledger highlights a striking observation: barely 1.5% of the total bitcoin supply is currently active on-chain, despite the asset’s value exceeding $2 trillion. For the company, this disparity illustrates a structural inefficiency and untapped potential.
With this feature, Ledger aims to bring bitcoin closer to DeFi use cases, historically dominated by Ethereum and compatible blockchains. The goal is clear: make BTC a more productive asset, without forcing holders to leave the self-custody ecosystem.
Bitcoin Facing Its Historical Paradox
Ledger’s initiative is part of a broader movement to integrate bitcoin into yield logics, long considered incompatible with its DNA. Bitcoin has built its legitimacy on simplicity, robustness, and resistance to counterparty risk. Any attempt to ‘make it work’ inevitably puts these principles in tension.
For Ledger, the stakes are strategic. By expanding its offering, the company positions itself not just as a key custodian but as a gateway to more complex financial uses. A turn that could support its market ambitions, as the group considers a public listing and shows strong revenue growth.
Whether users, historically cautious when it comes to bitcoin, will accept exchanging absolute security for still modest returns remains to be seen. The ‘BTC yield’ opens a door. It’s up to individuals to decide if it’s worth crossing.
