Klarna is stepping into the world of stablecoins in collaboration with Coinbase.

Partnership between Klarna and Coinbase for Stablecoin

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 add stablecoins to corporate financing tools.

New Financing Model

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

Klarna's Stablecoin Activities

Klarna's activities in the stablecoin space are continuing to grow. Last month, the company launched a stablecoin called KlarnaUSD, which is pegged to the value of the US dollar. This makes Klarna the first consumer payments 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 it is reported that the company plans to launch it on the mainnet by 2026. Additionally, it is expected that Klarna will further expand its long-term collaboration with Stripe in its global payment network with this stablecoin.

Moreover, this new financing channel will include various alternative financing methods such as consumer deposits, long-term debts, and short-term commercial papers, alongside Klarna's existing resources.

The information provided here does not constitute investment advice.