Klarna Teams Up with Coinbase to Accept Institutional Stablecoin Funding

Klarna, the Swedish fintech firm renowned for its "Buy Now, Pay Later" (BNPL) service, has formed a partnership with cryptocurrency exchange Coinbase to incorporate stablecoins into its institutional funding options.

Key Takeaways

Klarna partners with Coinbase to introduce stablecoin funding for institutions.
The company aims to raise short-term funding in USDC, diversifying its investor base.
This initiative is separate from Klarna's plans for consumer and merchant crypto services expected in 2026.
Klarna launched its own US dollar-pegged stablecoin, KlarnaUSD, on the Tempo blockchain, with a mainnet release planned for 2026.
The GENIUS Act facilitates clear rules for stablecoins, leading to increased issuances in the U.S.

Klarna partners with Coinbase to accept stablecoin funding from institutions

According to an announcement made on Friday, Klarna aims to secure short-term funding from institutional investors using USDC, taking advantage of Coinbase's crypto-native infrastructure.

“This marks an exciting first step into innovative fundraising methods,” said Klarna's CFO, Niclas Neglén. “Integrating stablecoins opens up our connections to a whole new category of institutional investors and allows us to diversify our funding avenues like never before,” he emphasized.

This new funding channel will complement Klarna’s current funding sources, which consist of consumer deposits, long-term debt, and short-term commercial paper.

Related: Klarna's CEO confirms the company will ‘embrace crypto’

Klarna's Strategic Move into Crypto

Klarna has noted that this stablecoin funding initiative is currently under development and is distinct from its plans aimed at consumers and merchants regarding cryptocurrency. Future initiatives may potentially involve wallets or additional digital asset services and are expected to advance further in 2026.

However, the company also pointed out that this initiative comes with regulatory, market, and operational risks, indicating that the actual results may vary from what is anticipated.

Klarna selected Coinbase for this venture due to the exchange's expertise in providing crypto infrastructure for large enterprises. Currently, Coinbase serves over 260 businesses around the globe, offering custody, settlement, and blockchain financial services.

Related: Stripe’s stablecoin blockchain Tempo launches public testnet

Introduction of Klarna's Dollar-Backed Stablecoin

Last month, Klarna introduced a US dollar-pegged stablecoin, positioning itself as the first digital bank to issue a token on Tempo, a new layer-1 blockchain created by Stripe and Paradigm. Known as KlarnaUSD, this stablecoin is presently operational on Tempo's testnet, with plans for a mainnet launch expected in 2026.

This token is developed by Bridge, a firm specializing in stablecoin infrastructure owned by Stripe, reinforcing Klarna’s longstanding collaboration with Stripe within its global payment network.

The enactment of the GENIUS Act in July in the United States set clear regulations for stablecoins, which has stimulated a surge in new stablecoin issuances.

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