Key Notes
- Ledger partners with Lombard and Figment to offer BTC yield without sacrificing self-custody or control.
- LBTC tokens earn rewards by securing Bitcoin-adjacent networks through Babylon’s staking infrastructure.
- The feature targets long-term holders, though current APY sits at just 0.41% according to DefiLlama.
Ledger Walletโs new bitcoin rewards feature lets self-custody bitcoin holders earn yield, integrating BTC into DeFi through Lombard and Figment without relinquishing control or altering Bitcoinโs base layer.
Ledger has activated these new features inside its Wallet app. It is initially accessible through the Discover section via a Figment-powered dApp that connects to Lombardโs infrastructure.
The company targets long-term holders and active traders seeking additional returns while maintaining control of their assets. Moreover, according to Lombardโs press release, only about 1.5% of the total BTC is currently active on-chain and unused.
With this tool, users deposit bitcoin, which is then converted into LBTC, a liquid token that tracks BTC and is designed to earn staking rewards. Ledger plans to extend the Discover feature to a native slot in the Earn section later in 2026. This would deepen its role as a BTC DeFi access point.
Your $BTC shouldn’t just sit idle.
Unlock rewards through the Ledger Wallet app with @Lombard_Finance via @Figment_io.
Through the Figment dApp in Ledger Wallet, BTC holders can access Lombardโs fully backed LBTC and earn rewards while staying fully in control of their assets.โฆ pic.twitter.com/NbqjaBxWif
โ Ledger (@Ledger) January 14, 2026
How LBTC and Babylon Generate BTC yield
The yield feature for Bitcoin
BTC
$97 430
24h volatility:
3.4%
Market cap:
$1.95 T
Vol. 24h:
$77.12 B
uses third-party integrations rather than built-in wallet code. Bitcoin deposits result in the token LBTC, which is easier to stake and remains usable in more DeFi tools.
LBTC accrues BTC-denominated rewards by helping secure โBitcoin secured networksโ via the Babylon Bitcoin Staking Protocol. Figment is one of the platforms that runs validator infrastructure for this process and connects the different networks.
The mechanism does not involve staking on Bitcoinโs base layer, which does not have this function. Instead, it uses BTC as economic collateral for other networks that settle or reference Bitcoin. This process preserves the holderโs underlying BTC exposure.
According to DefiLlama, Babylon Protocol and Lombard have $5.92 billion and $1.04 billion in TVL, respectively, making them the biggest platforms in Bitcoin DeFi.
Making Bitcoin DeFi Easier
The LedgerโLombardโFigment partnership brings BTC holders new earning opportunities in DeFi, signaling an expansion of Bitcoin DeFi amid growing demand for safe, yield-bearing BTC products.
Analysts are watching how much BTC this route can attract and how it interacts with DeFi protocol-level risks. Recent attention has focused on Babylonโs consensus bugs and the broader safety of BTC-backed security models.
For now, Ledger has not disclosed key risk-related information, such as expected APY, fee schedules, custodial risks, or regional availability details, in its press releases. Investors must weigh the promise of BTC-denominated rewards against the limited public disclosure of these risks.
It is worth noting that, according to DefiLlama, LBTC on Lombard reports an APY of 0.41%; this figure may change with different incentives.
If more users adopt it, Ledger could drive significant on-chain activity while helping holders maintain ownership of their coins, reinforcing its leadership as a DeFi gateway in an evolving market.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Josรฉ Rafael Peรฑa Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He wrote at top outlets like CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain, and Web3, he creates news, analysis, and educational content for global audiences in both Spanish and English.
