Klarna is stepping into the world of stablecoins 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 a significant step by partnering with the 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 provide short-term financing from institutional investors in USDC using Coinbase’s crypto-based infrastructure. Klarna’s CFO Niclas Neglén stated, “This is an exciting first step towards a new way of raising funds. Stablecoins offer us the opportunity to connect with an entirely new class of institutional investors and provide the potential to diversify our funding sources in ways that were previously not possible.”

Klarna's Stablecoin Activities

Klarna's activities in the stablecoin space continue to grow. Last month, the company launched a stablecoin called KlarnaUSD, which is pegged to the value of the US dollar. With this move, Klarna became 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 Tempo's testnet, and the company plans to launch it on the mainnet by 2026. Additionally, Klarna is expected to further expand its long-term collaboration with Stripe within the global payment network utilizing this stablecoin.

Furthermore, the new financing channel will also include various alternative financing methods alongside Klarna's existing resources, such as consumer deposits, long-term debt, and short-term commercial paper.

The information contained herein does not constitute investment advice.