Ledger has officially rolled out a new “BTC yield” feature for hardware wallet users, developed in collaboration with Lombard and Figment.
The launch allows Bitcoin holders to generate yield from self-custodied assets by converting BTC into LBTC, a yield-bearing liquid staking token accessible directly within the Ledger ecosystem.
The feature is designed to let users earn rewards without transferring funds to centralized platforms, keeping custody within their Ledger wallet while unlocking new on-chain functionality.
How the BTC Yield Feature Works
The integration combines Lombard’s liquid staking protocol with Figment’s staking infrastructure and is accessible through the “Discover” section of the Ledger Wallet app. Users deposit native BTC via the Figment–Lombard decentralized application, which converts the Bitcoin into LBTC.
Yield is generated by supporting network validation on the Babylon Bitcoin Staking Protocol. Unlike Ethereum staking, this process does not occur on the Bitcoin base layer. Instead, it relies on bitcoin-backed economic security mechanisms that secure other networks while keeping BTC itself off-chain.
To activate the yield process, users must approve two separate transactions. The first is an Ethereum message that specifies the destination address for LBTC. The second is a Bitcoin transfer sent to a Lombard-controlled address, completing the conversion workflow.
Liquidity and DeFi Access Across Multiple Networks
LBTC is designed as a liquid token, allowing users to continue using their assets after conversion. Once issued, LBTC can be deployed as collateral for lending, trading, or yield strategies across 15 different blockchains, including Ethereum, Solana, and Sui.
This structure allows users to maintain flexibility while participating in yield-generating activity, rather than locking assets into an illiquid staking position.
Strategic Focus on Activating Idle Bitcoin
Ledger describes the initiative as an effort to activate a $2.1 trillion dormant asset class. According to the company, only around 1.5% of the total Bitcoin supply is currently active on-chain. The BTC yield feature is positioned as a bridge between long-term cold storage and decentralized finance, offering a streamlined path to earning rewards without giving up self-custody.
Planned Expansion in 2026
At launch, the feature is available through the “Discover” section of the Ledger Wallet app. Ledger confirmed that a more deeply embedded version, integrated directly into the app’s “Earn” section, is planned for release later in 2026.