Looking at Ledger's New Feature: Stablecoin Yields and DeFi Integration

Ledger has added a new feature to its Ledger Live app, and it's worth paying attention to. The update allows users to earn interest on stablecoins like USDT, USDC, DAI, and USDS—without needing to move their assets out of their hardware wallet. Through a partnership with Kiln Finance, users can now access decentralised finance (DeFi) protocols from inside Ledger Live and earn yields ranging from 5% to 9.9% APY. Let’s explore how this works and why it matters.

What Is Ledger’s New Stablecoin Yield Feature?

Ledger is best known for helping people store their cryptocurrencies securely through hardware wallets. But now, the company is expanding what those wallets can do. With this update, users can put their stablecoins to work directly from the Ledger Live interface.

The feature, called Ledger Earn, offers yield opportunities on stablecoins. It’s designed to make it easier for people to take advantage of DeFi without giving up the safety that Ledger wallets are known for. Users don’t need to rely on browser wallets or centralised platforms to earn returns. Instead, they stay within the secure environment of Ledger Live.

The yields are powered by Kiln Finance, a platform that works behind the scenes to connect users to DeFi protocols like Aave, Compound, Spark, Morpho, and Sky. These platforms offer the interest rates, while Kiln simplifies access. All of this is integrated into Ledger Live, so users just follow a few steps to start earning, with no need for external tools or technical knowledge.

By offering yields between 5% and 9.9% APY—higher than the 2% to 5% often offered by centralised exchanges—Ledger is giving users more control over their assets and better earning potential. The funds stay in the user’s custody, but they are still being used in DeFi lending and liquidity protocols, which means there is some risk involved.

Read Also: Metamask and Aave Partnership: Using the Metamask Card in DeFi

How the Kiln Integration Works with DeFi Platforms

What makes this update possible is Kiln Finance. Rather than asking users to figure out how to interact with multiple DeFi protocols themselves, Kiln manages that complexity. It acts as a bridge between Ledger Live and DeFi platforms like Aave and Compound, where the actual interest-earning happens.

When someone decides to deposit their stablecoins through Ledger Earn, Kiln takes care of the backend work. It selects the appropriate DeFi strategies and directs funds accordingly. For example, if USDC is deposited, Kiln might place it in Aave’s lending pool or another yield-generating strategy depending on market conditions.

This setup keeps things straightforward for users. They don’t need to approve transactions manually on a browser wallet or navigate a DeFi website. The process all happens within Ledger Live, using the same hardware wallet they’re already familiar with.

Security-wise, this is a big improvement over most DeFi access methods. Hardware wallets already offer strong protection, and by avoiding browser-based wallets, users reduce the chances of phishing attacks or signing malicious contracts. Still, it’s important to understand that putting assets into DeFi—even through a secure interface—carries protocol risk. If one of the DeFi platforms integrated through Kiln were to be exploited or hacked, users might experience losses.

Ledger and Kiln are upfront about this. The platform doesn’t claim to remove risk—it just tries to make participation safer and easier. Choosing well-established DeFi protocols is one way it helps reduce potential issues, but it’s still up to the user to decide if the rewards are worth the risks.

Why This Matters for Self-Custody and the Future of DeFi

This feature signals an important shift in how users interact with crypto. Traditionally, people have had to choose between safety and earning potential. You could keep your assets in a hardware wallet, safe but idle, or move them into DeFi to earn, risking exposure to technical or security problems. With Ledger’s new approach, that gap is starting to close.

Self-custody has always been about control—being the sole owner of your assets. But now it’s also about capability. Ledger’s update means users can earn yields, choose DeFi strategies, and monitor performance all within one secure app. That’s a big change for both newcomers and experienced users who want convenience without giving up security.

It also reflects the broader direction of crypto space. Trust in centralised exchanges has taken a hit over the past few years, and more people are looking for alternatives. Ledger’s move shows that secure, self-directed finance doesn’t have to be complicated or out of reach.

There’s another side to this, too. For users who may have avoided DeFi because of the technical learning curve, Ledger’s new interface makes it far more approachable. It takes what used to be a multi-step, error-prone process and simplifies it down to a few clicks.

The update could also push other hardware wallet providers to follow suit. If users begin to expect integrated DeFi tools as part of their wallets, it may raise the bar across the board. That would be a good thing for accessibility, security, and transparency in crypto.

In the long run, this kind of innovation could help move DeFi into the mainstream. Not by changing what DeFi is, but by making it easier and safer to access. And with yields that outpace many centralized platforms, more users may decide that it’s time to keep their stablecoins in their own hands—and still make them grow.

Read Also: What Is a Crypto Hardware Wallet and How to Use It?

Conclusion

Ledger’s latest feature adds a powerful new tool to the Ledger Live app. By partnering with Kiln Finance and integrating leading DeFi protocols, users can now earn stablecoin yields without giving up control of their assets. It’s a balanced approach that keeps security at the forefront while opening the door to better returns.

If you're looking for an even smoother and safer crypto trading experience, consider trying Bitrue. It’s a user-friendly platform designed to help you manage, trade, and grow your crypto portfolio with confidence.

Frequently Asked Questions

1. Is using Ledger Earn completely risk-free?
No. While your funds remain in your Ledger wallet, you’re still exposed to risks from the DeFi protocols used.

2. Which stablecoins are supported in Ledger Earn?
You can use USDT, USDC, DAI, and USDS to earn yields through Ledger Earn.

3. Do I need to understand DeFi to use Ledger Earn?
Not really. Ledger Earn and Kiln handle the technical side, so you can participate without deep DeFi knowledge.