Klarna, a Swedish fintech company known for its “Buy Now, Pay Later” (BNPL) service, has teamed up with the crypto exchange Coinbase to incorporate stablecoins into its institutional funding strategy.
As part of this collaboration, the global payments and digital banking firm aims to secure short-term funding from institutional investors in USDC (USDC), utilizing Coinbase’s crypto-native infrastructure, as stated in a Friday announcement.
“This marks an exciting initial step into a new funding approach,” said Klarna’s chief financial officer Niclas Neglén. “Stablecoin links us to a new class of institutional investors and allows for diverse funding sources in ways that were not feasible a few years back,” he added.
This new funding method will complement Klarna’s established sources, which include consumer deposits, long-term debt, and short-dated commercial paper.
Related: Swedish fintech giant Klarna will ‘embrace crypto,’ CEO says
Klarna’s crypto initiative
Klarna mentioned that the stablecoin funding initiative is in development and distinct from its consumer- and merchant-focused crypto plans. These plans, which may involve wallets or other digital asset services, are expected to see more progress in 2026.
However, the payments firm warned that the initiative may face regulatory, market, and operational risks, noting that actual results might differ from expectations.
Klarna chose Coinbase for this initiative due to its expertise in providing crypto infrastructure to sizable enterprises. Currently, the exchange supports over 260 businesses globally, offering custody, settlement, and blockchain-based financial services.
Related: Stripe’s stablecoin blockchain Tempo launches public testnet
Klarna launches dollar-backed stablecoin
Last month, Klarna unveiled a US dollar–pegged stablecoin, becoming the inaugural digital bank to launch a token on Tempo, a new layer-1 blockchain created by Stripe and Paradigm. The stablecoin, named KlarnaUSD, is currently operational on Tempo’s testnet, with a mainnet launch scheduled for 2026, according to the company.
Developed by Stripe-owned stablecoin infrastructure firm Bridge, the token enhances Klarna’s long-standing collaboration with Stripe across its global payments network.
The GENIUS Act, passed in the United States in July, established clear guidelines for stablecoins and has spurred a wave of new issuances.
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