Klarna and Coinbase are stepping into the world of stablecoins in collaboration.

Klarna and Coinbase's Stablecoin Partnership

Swedish fintech company Klarna, known for its "Buy Now, Pay Later" (BNPL) services, has taken a significant step by forming a partnership with cryptocurrency exchange Coinbase in the stablecoin space. This collaboration aims to add stablecoins to corporate financing instruments.

New Financing Model

According to the announcement made on Friday, Klarna aims to provide short-term financing in USDC from institutional investors using Coinbase's crypto-based infrastructure. Klarna's CFO Niclas Neglén stated, “This is an exciting first step towards a new way of funding. Stablecoins give us the opportunity to meet 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 space are continuing to grow. Last month, the company launched KlarnaUSD, a stablecoin pegged to the US dollar. Thus, 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 test network, and it is reported that the company plans to launch it on the main network by 2026. Additionally, Klarna is expected to further expand its longstanding collaboration with Stripe in the global payment network with this stablecoin.

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

The information contained herein does not constitute investment advice.