Klarna Partners With Coinbase to Add Stablecoin Funding Mix
- Klarna taps Coinbase and USDC to expand access to short-term institutional funding.
- USDC funding targets balance-sheet financing, not consumer payments or trading crypto.
- Coinbase provides enterprise crypto infrastructure for settlement and treasury flows.
Klarna has partnered with Coinbase to raise short-term institutional funding using USDC, expanding its funding toolkit. The Swedish fintech plans to source dollar-denominated capital through Coinbase’s crypto-native infrastructure. The move targets treasury and capital markets needs, not consumer payments, and aims to diversify access to institutional funding.
How the USDC Funding Structure Works
Under the arrangement, Klarna will raise short-term funding from institutional investors denominated in USDC. Notably, the funding sits alongside consumer deposits, long-term loans, and short-dated commercial paper. The company said USDC allows access to dollar-like liquidity without relying solely on traditional banking rails.
Klarna plans to use Coinbase’s infrastructure to issue and manage the funding flows. However, the structure remains under development and has not been launched at scale. According to the company, the initiative focuses strictly on balance-sheet financing rather than customer-facing crypto services.
Niclas Neglén, Klarna’s chief financial officer, said stablecoins connect the firm to new institutional investors. He added that the structure enables diversification that traditional funding channels did not previously support. However, Klarna cautioned that regulatory, market, and operational risks could affect outcomes.
This funding approach shows a broader shift in how fintech firms explore digital dollars. Notably, USDC allows faster settlement and programmable funding mechanics. As a result, Klarna can access capital pools aligned with blockchain-based settlement preferences.
Why Coinbase Was Selected for the Initiative
Klarna said it selected Coinbase due to its experience supporting large enterprises. The exchange currently provides crypto infrastructure to more than 260 businesses globally. Those services include custody, settlement, and blockchain-based financial operations.
For Klarna, Coinbase acts as infrastructure rather than a consumer trading platform. However, the partnership mirrors how traditional firms use financial intermediaries for clearing and settlement. According to Klarna, Coinbase’s track record supported institutional-grade requirements.
Coinbase has increasingly focused on enterprise services beyond retail trading. Notably, stablecoin settlement and treasury tools now form a core part of its offering. Klarna’s use case adds another example of crypto infrastructure entering corporate finance workflows.
The partnership is also a structural shift in fintech funding strategies. Rather than issuing new consumer products, Klarna targets backend funding efficiency. As a result, the initiative remains separate from retail crypto experimentation.
Related: The Role of Stablecoins in Building Modern Financial Systems
How This Fits Klarna’s Broader Stablecoin Strategy
The USDC funding initiative stands apart from Klarna’s consumer and merchant crypto plans. Klarna said those projects may advance further during 2026. However, the company framed the funding effort as an institutional-only experiment.
Last month, Klarna launched a dollar-backed stablecoin called KlarnaUSD. The token runs on Tempo, a layer-one blockchain developed by Stripe and Paradigm. According to the company, KlarnaUSD currently operates on Tempo’s testnet, with a mainnet launch planned for 2026.
Bridge, a stablecoin infrastructure firm owned by Stripe, built the token. Notably, the issuance extended Klarna’s existing partnership with Stripe across the payments infrastructure. Klarna said the stablecoin launch marked the first digital bank token issued on Tempo.
Regulatory clarity has supported these developments. In July, the United States passed the GENIUS Act, establishing rules for stablecoin issuance and oversight. According to the company, clearer frameworks have encouraged institutional exploration of digital dollar tools.
However, Klarna emphasized that stablecoins remain confined to institutional flows within this initiative. The firm said it does not plan to replace existing funding channels. Instead, the structure complements traditional instruments already on its balance sheet.
Klarna’s partnership with Coinbase adds stablecoins to its institutional funding mix. The initiative uses USDC for short-term funding while remaining separate from consumer crypto products. Together, the moves place stablecoins within Klarna’s treasury strategy alongside established funding sources.
