Under pressure Ledger unveils plan to turn its crypto hardware wallet into a smartphone

Under pressure Ledger unveils plan to turn its crypto hardware wallet into a smartphoneLedger’s Atom will run apps like WhatsApp and Instragram and let users switch between smartphone functions and a protected mode for managing digital assets.Oct 15, 2026, 8:00 a.m. EDTA demo version of Ledger's Atom wallet (Jamie Crawley/CoinDesk)Ledger’s Atom, scheduled for release in mid-2027, will run apps like WhatsApp and Instragram and let users switch between smartphone functions and a protected mode for managing digital assets.The device will include tamper-resistant enclosures, sensors and packaging intended to prevent supply-chain attacks like the recent CryptoBilis breach, even when switched off.Ledger initially plans to sell Atom only through its website to limit third-party distribution risks, but it will not offer trade-ins for customers affected by the breach.Cryptocurrency hardware wallet maker Ledger said it is developing a new device that looks and functions more like a smartphone than a traditional wallet.The Ledger Atom, scheduled for release in mid-2027, marks a departure from the industry’s emphasis on safeguarding digital assets on minimalist devices meant to be locked away in a drawer or a desk.The Atom runs Android, meaning users will be able to install everyday applications like WhatsApp, Instagram and TikTok. Users can switch between ordinary smartphone functionality and a protected mode for managing digital assets. The device also incorporates integration with the AI assistant OpenClaw.The Atom announcement comes amid fallout from a supply-chain security breach involving Malaysian distributor CryptoBilis, in which attackers reportedly tampered with devices before they reached customers. Onchain researchers estimated losses of up to $93.2 million across more than 300 wallets, with Tether freezing $10 million of its dollar-pegged stablecoin USDT tied to the theft.The compromised wallets allegedly contained hidden chips capable of intercepting users’ 24-word recovery phrases — the stream of random words that only the owner of the wallet should know as the ultimate safeguard to their digital assets — by reading signals from their screens.Ledger says Atom will incorporate additional protections specifically designed to counter this type of attack, a spokesperson told CoinDesk via email. The safeguards include a protective enclosure around the device’s most sensitive components, sensors that detect attempts to remove its screen or back cover and packaging designed to reveal whether it has been opened.The tamper-detection system has its own battery to ensure it functions even if the device is switched off. “The Core protection enclosure will explicitly block the screen reader implants from this weekend’s incident,” the spokesperson said.Ledger plans to initially sell the device exclusively through its own website rather than through third-party sellers, in theory reducing exposure to distribution channels implicated in the CryptoBilis incident. The company also said it has no plans to introduce trade-in programs for existing customers affected by the incident, though it does not rule out future upgrade promotions. The concept of combining smartphone functionality with hardware-level crypto security isn’t entirely new. Solana introduced its Saga smartphone in 2023, followed by its successor, Seeker, last year. Both featured built-in hardware protection for private keys. Ledger is approaching this idea from the opposite direction, by starting with a crypto security device and turning it into something resembling an everyday smartphone. AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.12345678910