Klarna partners with Coinbase on institutional stablecoin funding

Klarna has partnered with Coinbase to introduce stablecoins into its institutional funding strategy as part of a broader exploration of blockchain-based finance.

The Swedish buy now, pay later firm plans to raise short-term funding from institutional investors using USDC-denominated instruments through Coinbase infrastructure.

Klarna said the initiative is designed to support treasury and capital markets operations rather than consumer-facing crypto products.

The new funding channel will operate alongside existing sources such as customer deposits, long-term debt and commercial paper.

This is an exciting first step into a new way to raise funding.

Klarna chief financial officer Niclas Neglén said.

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.

Neglén added.

Klarna said the stablecoin programme remains under development and is subject to regulatory, market and operational risks.