Klarna has partnered with Coinbase to increase USDC funding from institutions.
Klarna, a Swedish fintech company offering a “buy now, pay later” (BNPL) service, has partnered with crypto exchange Coinbase to add stablecoins to its institutional funding toolkit.
Under the arrangement, the global payments and digital banking firm plans to use Coinbase's crypto-native infrastructure to raise short-term funding from institutional investors registered in USDC.
“This is an exciting first step into a new way of raising money,” said Klarna's chief financial officer, Niklas Naeglen. “Stablecoin connects us to a whole new class of institutional investors, and gives us the ability to share our funding sources in ways that weren't possible a few years ago,” he added.
The new funding channel sits alongside Klarna's existing sources, which include consumer deposits, long-term debt and short-term commercial paper.
Related: Swedish fintech giant Klarna 'embraces crypto', says CEO
Klarna's crypto push
Klarna says the stablecoin funding initiative remains in development and is separate from consumer- and merchant-facing crypto schemes. Those efforts involving wallets or additional digital asset services are expected to move forward further in 2026.
However, the payments firm cautioned that the results are subject to regulatory, market and operational risks, noting that results could differ from expectations.
Klarna said it chose Coinbase for its initiative because of its experience in providing crypto infrastructure to large enterprises. The exchange currently supports more than 260 businesses worldwide, offering custody, settlement and blockchain-based financial services.
Related: Stripe's stablecoin blockchain Tempo launches public testnet
Klarna launched a stable coin backed by the dollar
Last month, Klarna became the first digital bank to issue a token on Tempo, a new layer-1 blockchain developed by Stripe and Paradigm, creating a US dollar-pegged stablecoin. The stablecoin, called KlarnaUSD, is currently live on Tempo's testnet and is slated for a 2026 mainnet launch, the company said.
The token, developed by Stripe-owned stablecoin infrastructure firm Bridge, extends Klarna's long-standing partnership with Stripe in its global payments network.
The Genius Act passed in the United States in July established clear rules for stablecoins and helped ease new issues.
Magazine: 2026 is the year of practical privacy in crypto – Canton, Zcash and more.
