Klarna and Coinbase Step into the World of Stablecoins with Partnership

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 sector. This collaboration aims to integrate 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 funding. Stablecoins offer us the opportunity to connect with a completely new class of institutional investors and present 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 steadily increasing. Last month, the company launched KlarnaUSD, a stablecoin pegged to 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 test network, and the company is reportedly planning to launch it on the mainnet by 2026. Additionally, Klarna is expected to further expand its long-standing collaboration with Stripe in the global payment network with this stablecoin.

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

The information provided herein does not constitute investment advice.