Klarna, known for its Buy Now, Pay Later (BNPL) services, has formed a strategic partnership with Coinbase to incorporate stablecoins into its funding options for institutional investors.
Under this collaboration, Klarna intends to seek short-term funding using USDC (a stablecoin) through Coinbase’s digital platform, as indicated by recent announcements from the company.
“This is an exciting first step into a new way to raise funding,” Klarna’s CFO Niclas Neglén stated. “Stablecoin connects us to an entirely new class of institutional investors, and gives us the potential to diversify our funding sources in ways that simply weren’t possible a few years ago.”
This funding approach complements Klarna’s traditional sources, which include consumer deposits, long-term debt, and commercial paper.
Klarna’s Venture into Cryptocurrency
The stablecoin funding project is currently under development and distinct from Klarna’s consumer-oriented cryptocurrency initiatives, which may encompass wallets or other digital asset services expected to evolve further by 2026.
Despite the promising opportunities, Klarna has acknowledged regulatory, market, and operational risks associated with this venture, indicating a potential variance in actual results compared to expectations.
Klarna chose Coinbase due to its extensive expertise in offering cryptocurrency infrastructure to major enterprises. The exchange supports over 260 clients worldwide, providing custody and settlement solutions within the blockchain realm.
Launch of Dollar-Backed Stablecoin
Recently, Klarna introduced a US dollar-backed stablecoin, becoming the initial digital bank to issue a token on the Tempo blockchain, a new layer-1 platform developed by Stripe and Paradigm. The stablecoin named KlarnaUSD is currently operational on Tempo’s testnet, with an official mainnet launch anticipated by 2026.
This launch extends Klarna’s existing partnership with Stripe across their global payment network. Meanwhile, the GENIUS Act introduced in the U.S. this past July is setting clear guidelines for stablecoins and has led to a surge in new issuances.
