Coinbase Expands Lending Service with HYPE and ZEC

Coinbase has expanded its crypto-backed lending service to include two new assets: Hyperliquid's HYPE and Zcash's ZEC. Eligible US customers outside of New York can now borrow up to $100,000 in USDC using these tokens as collateral. This expansion adds to the platform's existing lending product, which already has over $1.4 billion in active loans backed by approximately $3 billion in collateral.

The new option gives HYPE and ZEC holders a way to access dollar liquidity without selling their positions. Through the Coinbase interface, collateral is transferred on-chain to Morpho while borrowed USDC is delivered to the user's account. This integration with Morpho's on-chain lending infrastructure allows borrowers to access liquidity without leaving the Coinbase application.

While the loans are not risk-free, users can monitor their loan health and reduce risk by repaying debt or adding collateral. Borrowing rates can change according to market supply and demand, and interest continues to accumulate as long as the position remains open. Additionally, a processing fee is charged, with 2% on the first $250,000 borrowed and 1% on amounts above that.