Klarna is stepping into the stablecoin world with a partnership with Coinbase.

Klarna and Coinbase’s Stablecoin Partnership

The Swedish fintech company Klarna, known for its "Buy Now, Pay Later" (BNPL) services, has taken an important step by partnering with cryptocurrency exchange Coinbase in the stablecoin space. This collaboration aims to incorporate stablecoins into corporate financing tools.

New Financing Model

According to the announcement made on Friday, Klarna aims to utilize Coinbase's crypto-based infrastructure to provide short-term financing from institutional investors in USDC. Klarna's CFO Niclas Neglén stated, “This is an exciting first step towards a new way of raising funds. Stablecoins give us the opportunity to connect with a completely new class of institutional investors and offer the potential to diversify our funding sources in ways that were previously not possible.”

Klarna’s Stablecoin Activities

Klarna's activities in the stablecoin sector are continuing to grow. Last month, the company launched a stablecoin called KlarnaUSD, which is pegged to the value of the US dollar. This made Klarna the first consumer payment company to issue a token on Tempo, a new Layer-1 blockchain developed by Stripe and Paradigm.

KlarnaUSD is currently actively used on the Tempo test network, and it is reported that the company plans to launch it on the main network by 2026. Furthermore, Klarna is expected to further expand its long-term collaboration with Stripe in the global payment network through this stablecoin.

Moreover, the new financing channel will include various alternative financing methods, such as consumer deposits, long-term debt, and short-term commercial papers, in addition to Klarna's existing resources.

The information contained here does not constitute investment advice.