Coinbase has expanded its crypto-backed lending service to include HYPE and ZEC tokens. Eligible users in the United States, excluding New York, can now use these assets as collateral to borrow up to $100,000 in USDC through the Coinbase mobile application.
The lending infrastructure relies on the Morpho on-chain protocol. Risk parameters for these altcoins are set at a maximum loan-to-value ratio of 49%, with a liquidation threshold of 62.5%. This service allows users to access liquidity without executing a taxable sale of their holdings.
On September 1, the company introduced cbHYPE and cbZEC on its Base layer-2 network. These wrapped tokens are backed one-to-one by assets in Coinbase custody, enabling integration with DeFi applications. The platform has processed between $1.9 billion and $3 billion in total loan originations since launch.
