Klarna (NYSE:KLAR), the global digital bank and flexible payments provider, has partnered with Coinbase (NASDAQ:COIN) to add stablecoin funding to its broad range of traditional sources of funding, which include consumer deposits, long-term loans and short-dated commercial paper. The digital bank intends to raise short-term funding from institutional investors “denominated in USDC utilizing Coinbase’s digitally native infrastructure.” Adding a USDC-denominated funding source enables Klarna to “access USD-like funding directly, tapping into a new pool of institutional investors.”
Niclas Neglén, Chief Financial Officer, Klarna, has said that stablecoin connects them to an entirely “new class of institutional investors, and gives us the potential to diversify our funding sources in ways that simply weren’t possible a few years ago.”
They have added in the recent update that this is just the beginning of “how digital assets can work alongside our traditional funding sources.”
Klarna says that it chose Coinbase for this initiative “for its track record in the space – it currently powers crypto infrastructure for more than 260 businesses globally.”
As clarified in the update from the Fintech company, this particular avenue for using stablecoin for funding is still in development and is separate “from Klarna’s consumer- and merchant-focused crypto and stablecoin endeavors which it will embark on with continued pace in 2026.”
As covered earlier this month, Klarna has signed a new research partnership with Privy, the wallet infrastructure platform and a Stripe company, in order to explore, research and co-design potential wallet solutions to power a new generation of crypto products for Klarna users. The agreement follows Klarna’s launch of its own stablecoin, KlarnaUSD, in partnership with Tempo and Bridge.
Now, the BNPL Fintech company is reportedly exploring building a wallet to “make it easier for everyday people to actually use, store, and transact with crypto, lowering the barrier for mainstream adoption.”
