Klarna Partners With Coinbase to Raise USDC Funding From Institutions
Klarna, a Swedish fintech firm known for its Buy Now, Pay Later services, has partnered with Coinbase to enable institutional funding using USDC stablecoin. This move allows Klarna to access a new class of institutional investors and diversify its funding sources beyond consumer deposits, long-term debt, and commercial paper. The stablecoin-based funding initiative, still in development and apart from Klarna’s consumer crypto offerings, will leverage Coinbase’s crypto infrastructure. Klarna acknowledges regulatory, market, and operational risks associated with the project. Separately, Klarna recently launched KlarnaUSD, a US dollar–pegged stablecoin, on Tempo’s testnet, with a planned mainnet launch in 2026. This token, developed with Stripe and Bridge, marks Klarna as the first digital bank to issue a stablecoin on Tempo. The GENIUS Act in the US has provided regulatory clarity that is supporting new stablecoin initiatives.
