Klarna and Coinbase Join Forces for Stablecoin Funding

Klarna, a Swedish fintech firm famous for its "Buy Now, Pay Later" service, has teamed up with Coinbase, a major crypto exchange. This partnership aims to introduce stablecoins into Klarna's methods for raising funds from big investors. The plan involves using USDC, a type of stablecoin, to secure short-term funding. This move opens up Klarna to a whole new group of investors. Niclas Neglén, Klarna's CFO, sees this as an exciting step into a new way of funding. He believes stablecoins offer a chance to diversify funding sources in ways that were not possible before. This new funding method will work alongside Klarna's existing sources, which include consumer deposits, long-term debt, and short-term commercial paper. However, Klarna warns that this initiative comes with risks. Regulatory, market, and operational challenges could affect the outcome.Klarna chose Coinbase for this project because of its experience in providing crypto infrastructure to large companies. Coinbase supports over 260 businesses globally, offering services like custody, settlement, and blockchain-based financial solutions. In addition to this funding initiative, Klarna has other crypto plans. These include developing wallets and additional digital asset services, which are expected to progress further in 2026. Last month, Klarna launched a US dollar-backed stablecoin called KlarnaUSD. This makes Klarna the first digital bank to issue a token on Tempo, a new blockchain developed by Stripe and Paradigm. The stablecoin is currently live on Tempo’s testnet, with a mainnet launch planned for 2026. The GENIUS Act, passed in the United States in July, has established clear rules for stablecoins. This has encouraged more companies to issue their own stablecoins, including Klarna.