Klarna noted the initiative faces regulatory, market, and operational risks, with actual outcomes potentially differing from expectations.
Crypto News
Swedish fintech firm Klarna has partnered with Coinbase to raise short-term institutional funding denominated in USDC, adding stablecoins to its funding sources. The Buy Now, Pay Later provider will use Coinbase's infrastructure to access institutional investors, according to a Friday announcement.
Klarna CFO Niclas Neglén stated the arrangement represents an initial step into new funding methods. Stablecoins connect the company to institutional investor classes and diversify funding sources in ways not possible several years ago. The new channel operates alongside existing sources, including consumer deposits, long-term debt, and short-dated commercial paper.
The stablecoin funding initiative remains under development and operates separately from consumer and merchant-facing crypto plans. Those efforts may include wallets or additional digital asset services expected to advance in 2026. Klarna noted the initiative faces regulatory, market, and operational risks, with actual outcomes potentially differing from expectations.
Klarna selected Coinbase based on its experience providing crypto infrastructure to large enterprises. The exchange supports more than 260 businesses globally with custody, settlement, and blockchain-based financial services. The partnership extends Klarna's institutional funding toolkit while maintaining its core payment processing operations.
Klarna launched KlarnaUSD last month, becoming the first consumer payments firm to issue a token on Tempo. The layer-1 blockchain developed by Stripe and Paradigm currently hosts the stablecoin on testnet, with mainnet launch planned for 2026. Stripe-owned infrastructure firm Bridge built the token, extending Klarna's partnership with Stripe across its global payments network.
The GENIUS Act, passed in the United States in July, established regulatory frameworks for stablecoins and helped fuel new issuances. Klarna's dual approach combines stablecoin issuance with the use of digital assets for institutional funding. The company operates BNPL services, allowing consumers to split purchases into installments, and processes billions in annual transaction volume.
Klarna's move into stablecoin funding reflects broader institutional adoption of digital assets for capital markets operations. The company maintains its traditional funding sources while exploring cryptocurrency-based alternatives. Institutional investors are gaining exposure to fintech operations through dollar-denominated digital tokens rather than conventional debt instruments or equity positions.
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