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 via Babylon’s staking infrastructure.
- The feature targets long-term holders, although the current APY sits at just 0.41% according to DefiLlama.
Ledger Wallet’s new Bitcoin Rewards feature allows self-custodial Bitcoin holders to earn yield, integrating BTC into DeFi via Lombard and Figment without relinquishing control or modifying Bitcoin’s base layer.
Ledger has enabled these new features in 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. Additionally, according to Lombard’s press release, only about 1.5% of total BTC is currently active on-chain and unused.
With this tool, users deposit bitcoin, which is then converted to LBTC, a liquid token that tracks BTC and is designed to earn staking rewards. Ledger plans to expand the Discover functionality to a native location in the Earn section later in 2026. This would strengthen its role as a BTC DeFi hotspot.
Your $BTC should not sit idly by.
Unlock rewards through the Ledger Wallet app with @Lombard_Finance via @Figment_io.
Through the Figment dApp in Ledger Wallet, BTC holders can access LBTC fully backed by Lombard and earn rewards while maintaining full 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
$97,430
24h volatility:
3.4%
Market capitalization:
$1.95T
Flight. 24h:
$77.12 billion
uses third-party integrations rather than the built-in wallet code. Bitcoin deposits give rise to the LBTC token, which is easier to stake and remains usable in more DeFi tools.
LBTC accumulates BTC-denominated rewards by helping secure “Bitcoin Secure Networks” via the Babylon Bitcoin Staking protocol. Figment is one of the platforms that runs the validation infrastructure for this process and connects the different networks.
The mechanism does not involve staking on the base layer of Bitcoin, which does not have this function. Instead, it uses BTC as economic collateral for other networks that settle or benchmark Bitcoin. This process preserves the holder’s underlying BTC exposure.
According to DefiLlama, Babylon Protocol and Lombard hold $5.92 billion and $1.04 billion in TVL, respectively, making them the largest platforms in Bitcoin DeFi.
Making Bitcoin DeFi Easier
The Ledger-Lombard-Figment partnership offers BTC holders new revenue opportunities in DeFi, signaling an expansion of Bitcoin DeFi amid growing demand for secure, yield-generating BTC products.
Analysts are observing how much BTC this route can attract and how it interacts with risks at the DeFi protocol level. Recent attention has focused on Babylon consensus bugs and the broader security of BTC-backed security models.
At this time, 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 yields an APY of 0.41%; this figure may change with different incentives.
If more users adopt it, Ledger could generate significant on-chain activity while helping holders maintain ownership of their coins, solidifying its leadership as a DeFi gateway in an evolving market.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article is intended to provide accurate and current information, but should not be considered financial or investment advice. Because market conditions can change quickly, we encourage you to verify the information for yourself and consult a professional before making any decisions based on this content.
José Rafael Peña Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He has written in leading media outlets like CriptoNoticias, BeInCrypto and CoinDesk. Specializing in Bitcoin, blockchain and Web3, he creates news, analysis and educational content for global audiences in Spanish and English.
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