Coinbase Lets Users Borrow Up to $100,000 Against HYPE and ZEC

TL;DR

• Coinbase now lets eligible US users outside New York borrow up to $100,000 in USDC using HYPE and ZEC as collateral.
• The loans operate through Morpho on Base, allowing users to access liquidity without immediately selling their crypto.
• The expansion adds two assets to a lending product that already has more than $1.4 billion in active loans backed by about $3 billion in collateral.
  

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Coinbase has expanded its crypto-backed lending service by adding Hyperliquid’s HYPE and Zcash’s ZEC as collateral for USDC loans of up to $100,000. The product is available to eligible US customers outside New York and uses Morpho’s onchain lending infrastructure on Base.

Assets you swore you'd never sell:
– HYPE
– ZEC

Assets you can now instantly borrow up to $100k against instead of selling:
– HYPE
– ZEC

Guess that works out. pic.twitter.com/FX9qGdSrXu

— Coinbase 🛡️ (@coinbase) September 29, 2026

The new option gives HYPE and ZEC holders another way to access dollar liquidity without selling their positions. Through the Coinbase interface, collateral is transferred onchain to Morpho while borrowed USDC is delivered to the user’s Coinbase account. Coinbase provides the front-end experience, while Morpho supplies the underlying lending infrastructure.

Coinbase Expands Onchain Borrowing

The addition of HYPE and ZEC extends a product that Coinbase first introduced in January 2025 with bitcoin-backed loans. Since then, the platform has broadened collateral support, reflecting a wider push to make onchain credit accessible through a familiar exchange interface.

Morpho’s infrastructure also gives the product an important onchain component. Coinbase says borrowers can access Morpho-based lending without leaving its application, while the underlying positions remain on Base. Morpho reported that Coinbase’s variable-rate loan product had surpassed $1.4 billion in active loans backed by roughly $3 billion in collateral.

For the broader crypto market, the expansion connects more tokens with a financial use case beyond trading. HYPE, the native token of Hyperliquid, can now serve as productive collateral, while ZEC holders gain access to liquidity without necessarily reducing their exposure to the asset.

Borrowing Costs And Liquidation Risks

The loans are not risk-free. Variable borrowing rates can change according to market supply and demand, while interest continues accumulating as long as the position remains open. Coinbase also charges a processing fee, with its published schedule listing 2% on the first $250,000 borrowed and 1% on amounts above that.

The main risk comes from liquidation. If the value of HYPE or ZEC falls while the debt increases through accrued interest, the loan-to-value ratio can rise toward the asset-specific liquidation threshold. Coinbase states that users can monitor their loan health and reduce risk by repaying debt or adding collateral.