Ledger introduces bitcoin rewards through its Wallet app, allowing holders to earn yield via LBTC tokens while maintaining self-custody and control of their assets.
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Ledger Wallet’s new bitcoin rewards feature lets self-custody bitcoin holders earn yield, integrating BTC into DeFi through Lombard and Figment without relinquishing control or altering Bitcoin’s 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 Lombard’s infrastructure.

The company targets long-term holders and active traders seeking additional returns while maintaining control of their assets. Moreover, according to Lombard’s 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 Lombard’s fully backed LBTC and earn rewards while staying fully in control of their assets.… pic.twitter.com/NbqjaBxWif

— Ledger (@Ledger) January 14, 2026

How LBTC and Babylon Generate BTC yield

The yield feature for Bitcoin

BTC
$97 533



24h volatility:
3.6%


Market cap:
$1.95 T



Vol. 24h:
$75.41 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 “Bitcoin secured networks” 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 Bitcoin’s 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 holder’s 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 Ledger–Lombard–Figment 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 Babylon’s 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.

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