Under Pressure, Ledger Unveils Plan to Turn Its Crypto Hardware Wallet Into a Smartphone

Ledger's Atom Runs Apps Like WhatsApp and Instagram, Letting Users Switch Between Smartphone Functions and a Protected Mode for Managing Digital Assets

Ledger, a maker of cryptocurrency hardware wallets, said it is developing a new device that looks more like a smartphone than a traditional wallet.

Set to launch in mid-2027, the Ledger Atom represents a departure from the industry's emphasis on protecting digital assets in minimalist devices that lock away in a drawer or desk.

The Atom runs Android, which means users can install everyday apps like WhatsApp, Instagram, and TikTok. Users can switch between normal smartphone operation and protected mode to manage digital assets. The device also integrates with the OpenClaw AI assistant.

As is customary with its more sophisticated devices, the product will be manufactured at Ledger at its location in Vietnam.

Atom's announcement comes amid a supply chain security breach involving Malaysian distributor CryptoBilis, in which attackers apparently tampered with devices before reaching customers. Onchain researchers estimated losses of more than $93.2 million across more than 300 wallets, while Tether froze $10 million of its dollar-pegged stablecoin USDT linked to the theft.

The compromised wallets apparently contained hidden chips that could intercept users' 24-word recovery phrases — a stream of random words that only the wallet owner should know as the ultimate safeguard for their digital assets — by reading signals from their screens.

The incident largely affected users in Southeast Asia, citing the Ledger's investigation Wednesday that there were no reported fund losses in Europe.

A CoinDesk spokesperson told CoinDesk via email that Ledger says Atom uses additional protections specifically designed to counter these types of attacks. These safeguards include a protective casing around the device's most sensitive components, sensors that detect attempts to remove the screen or back cover, and packaging designed to indicate that the device has been opened.

It has its own battery tamper detection system to ensure its operation even when the device is turned off.

"Core's protective enclosure expressly prevents screen reader implants from this weekend's incident," the spokesperson said.

Ledger plans to initially sell the device exclusively through its website and not through third-party sellers, theoretically reducing exposure to the distribution channels involved in the CryptoBilis incident.

The company also said it had no plans to introduce trade-in plans for existing customers affected by the incident, although it did not rule out future upgrade promotions.

The concept of combining smartphone functionality with hardware-level cryptographic security is not entirely new. Solana introduced its Saga smartphone in 2023, followed by its successor, the Seeker, last year. Both had built-in hardware protection for private keys. Ledger approaches this idea from the opposite direction, starting with a cryptographic security device and turning it into something like an everyday smartphone.

Update (October 15, 12:05 UTC): Adds the location of the atom build and points to the investigation of the CryptoBilis event, which shows no loss of capital in Europe.

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