Klarna partners with Coinbase to add stablecoin funding source

Klarna (NYSE: KLAR) has partnered with Coinbase (NASDAQ: COIN) to incorporate stablecoin funding into its financing structure, the digital bank announced. The company plans to raise short-term funding from institutional investors denominated in USDC using Coinbase's infrastructure.

The move adds to Klarna's existing funding sources, which include consumer deposits, long-term loans and short-dated commercial paper. The stablecoin funding will allow the company to access USD-denominated funding directly and tap into institutional investors in the digital asset space.

"This is an exciting first step into a new way to raise funding," said Niclas Neglén, Klarna's Chief Financial Officer. "Stablecoin connects us to an entirely new class of institutional investors, and gives us the potential to diversify our funding sources in ways that simply weren't possible a few years ago."

Klarna selected Coinbase based on its infrastructure capabilities, noting that Coinbase currently provides crypto infrastructure services to more than 260 businesses globally.

The stablecoin funding initiative remains in development and operates separately from Klarna's planned consumer and merchant crypto services, which the company expects to launch in 2026.

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