Coinbase Expands Lending Options with HYPE and ZEC Collateral

Coinbase has expanded its lending options by adding two new collateral assets to its Morpho platform. Starting September 29, customers can borrow up to $100,000 against their holdings of HYPE (Hyperliquid's token) and ZEC (Zcash's token). The addition allows holders to access USDC without selling their tokens first.

However, there is a risk involved - the collateral is at risk of automatic liquidation if the loan-to-value ratio falls below the threshold. Coinbase emphasizes that it is not the lender but rather provides the interface for borrowing.

The expansion builds on Coinbase's January 2025 rollout of bitcoin-backed Morpho loans, which initially accepted only BTC. Eligible customers can now use a range of collateral options, including BTC, ETH, cbETH, XRP, DOGE, ADA, LTC, SOL, and JitoSOL, subject to regional and loan type variations.

Coinbase's fee schedule lists a 2% processing charge on the first $250,000 borrowed and 1% on amounts above that. The platform also offers fixed-rate loans with a maturity date and separate fees may apply.