yes, kind of. (you don't just launch the wad, you still have to install them)
it's possible by making of copy of your console's memory (NAND), and redirecting access to the copy.
It means you can have up to 4TB of (fake/redirected) internal memory, instead of 512MB !
It's (wrongly) called "Emulated NAND".
best name would be redirected NAND, but it's now a common term to use "emuNAND" to talk about that feature.
It's very easy to setup, and I recommend using USBLoaderGX to create/manage/launch games located on it.
it's not 100% compatible, but 80-90% of the games are working. for the non working games you can install to your real NAND memory (on the console), or use another redirecting method called "neek".
1. launch USBGX
2. select where you want to put your memory copy (settings>user path>emuNAND channel folders), by default it's "sd:/nand/", you can set it to "usb1:/nand" if you want to use USB to get more free space.*
3. settings>features>dump NAND>full
4. settings>features>emuNAND WAD Manager (to install games into the emulated NAND folder instead of your real console)
5. main window > top menu > 4th icon > enable "channels from emuNAND".
* USB has some restrictions, if your HDD is not compatible, the loader will tell you what the problem is when launching a game.
I'll let you read more about emuNAND here :
https://gbatemp.net/posts/6592730