Coinbase Expands Crypto-Backed Lending with HYPE and ZEC

Coinbase has expanded its crypto-backed lending feature to include Hyperliquid (HYPE) and Zcash (ZEC), allowing users to borrow up to $100,000 in USDC without triggering a taxable sale. This move continues Coinbase's pattern of steady collateral expansion for its lending product, which now supports assets like XRP, DOGE, ADA, and LTC.

The feature is available to eligible US users outside of New York through the Coinbase app. The loan infrastructure runs on Morpho, an on-chain lending protocol that plays out in the background when a user posts collateral.

Coinbase previously launched wrapped versions of HYPE and ZEC on its Ethereum Layer 2 network, Base, which serves as DeFi-compatible representations of these tokens. This allows users to interact with these assets without requiring direct access to their native chains.