Coinbase has expanded its suite of wrapped assets by launching cbZEC and cbHYPE on the Base network. The new tokens represent Zcash (ZEC) and Hyperliquid (HYPE) respectively and are fully backed by the underlying assets held in the company’s custody.

Both tokens are issued as ERC-20 compatible assets available exclusively on Base. Coinbase maintains a one-to-one reserve of the native ZEC and HYPE tokens, allowing holders to redeem the wrapped versions for the original assets through their Coinbase accounts.

How the New Tokens Function

cbZEC and cbHYPE join an existing lineup of Coinbase-wrapped assets that already includes cbBTC, cbETH, cbXRP, cbDOGE, cbADA, cbLTC and cbMEGA. The custody model means every circulating wrapped token is matched by an equivalent amount of the native asset locked under Coinbase’s control.

Users can deposit the wrapped tokens into Coinbase accounts and withdraw the corresponding native assets on demand. This structure removes the need for third-party bridges and keeps the conversion process within a regulated custodial framework.

Integration into Base DeFi

The tokens are live on Base and have been integrated into Aerodrome, a major decentralized exchange and liquidity platform on the network. Holders can trade the assets, supply them as liquidity, or use them as collateral in lending markets.

For cbHYPE specifically, the token supports staking that helps secure Hyperliquid’s HyperBFT consensus mechanism. Staking can generate yields of up to 17 percent annual percentage yield along with trading fee discounts on the Hyperliquid platform.

cbZEC brings Zcash’s privacy-focused asset into Ethereum Virtual Machine environments without requiring users to manage complex cross-chain transfers. This opens pathways for the privacy coin to serve as collateral or liquidity in open decentralized finance applications.

Security Warnings and Contract Verification

Alongside the launch, Coinbase issued a clear advisory about counterfeit tokens and impersonation attempts. The company published the official Base contract addresses and stressed that users must verify them before any interaction.

Scammers commonly create look-alike tokens or fake contracts around new asset listings. Coinbase advised account holders to confirm both the network and the exact contract address before transferring funds or approving transactions.

The tokens operate solely on Base. Any asset appearing under similar names on other networks or under different contract addresses should be treated as unauthorized.

Broader Context of Coinbase’s Wrapped Asset Strategy

The addition of cbZEC and cbHYPE continues Coinbase’s systematic expansion of custodied wrapped tokens on Base. The approach began with cbBTC and has steadily incorporated additional major assets to increase the range of capital that can move freely within the Base ecosystem.

By keeping the underlying reserves under its own custody, Coinbase aims to provide a regulated on-ramp for assets that originate on other chains or operate under different technical standards. The model allows those assets to participate in Base’s growing set of decentralized applications while remaining redeemable at a fixed one-to-one ratio.

Zcash described the launch of its wrapped version as freedom money reaching more people, framing the move as an expansion of the privacy coin’s practical reach.

Reserve transparency details and precise trading liquidity levels on Aerodrome were not fully disclosed at the time of the announcement. Market participants will monitor on-chain activity and liquidity depth in the coming weeks to assess adoption.