Klarna Group, the Swedish fintech giant, just teamed up with Coinbase, one of the top U.S. crypto exchanges, to bring stablecoin-based funding into the mix.
It’s a big move that really blends old-school finance with the world of digital assets.
They announced the partnership in December 2025.
Now, institutional investors can give Klarna short-term funding in USD Coin (USDC), which is one of the most popular stablecoins tied to the U.S. dollar.
Klarna uses Coinbase’s tech to handle these stablecoin deposits, adding them to its usual sources of funding.
Things like consumer deposits, long-term loans, and commercial paper.
“This collaboration opens a new avenue for raising capital in a rapidly evolving financial ecosystem,” said Klarna’s CFO, Niclas Neglén.
“Stablecoins connect us to an entirely new class of institutional investors and diversify our funding sources in ways simply not possible just a few years ago.”
A New Funding Channel for a BNPL Leader
Klarna made its name with “buy now, pay later” payments, letting people split up purchases into interest-free installments.
They’ve usually made money by charging merchant fees and pulling in funds from deposits or borrowing.
Now, by tapping into stablecoin funding, Klarna wants to open up new sources of capital and lean less on traditional banks.
At first, this move targets big players like hedge funds, asset managers, and anyone holding a lot of stablecoins.
These groups can use their digital assets to fund Klarna’s balance sheet. Honestly, this isn’t just about Klarna.
Across the finance world, more companies are looking at stablecoins for things like treasury management and liquidity, since stablecoins mimic the dollar and settle fast in the digital world.
More News: Coinbase to Add 24/7 Trading for SHIB, Bitcoin Cash and Dogecoin
Why Coinbase?
Coinbase stands out as one of the most established and regulated crypto platforms out there, which is exactly why they got tapped for this project.
They’ve got the kind of solid crypto infrastructure and hands-on experience with big institutional clients that you need for something like this.
Right now, Coinbase handles custody, trading, and settlement services for stablecoins for hundreds of businesses all over the world.
But it’s not just about offering rails for USDC funding. Coinbase’s role here shows how seriously they’re pushing beyond just retail trading, aiming for enterprise-level crypto financial tools.
This fits right in with what’s happening across the industry in 2025. Stablecoins aren’t just for trading anymore.
They’re popping up in corporate finance, payments, and cross-border settlements, too.
Timing and Broader Crypto Strategy
Klarna’s move comes at a time when more companies are getting involved with digital assets.
Just a few weeks before the Coinbase news, Klarna rolled out its own stablecoin, KlarnaUSD, built on the Tempo blockchain and backed by Stripe and Paradigm.
KlarnaUSD is mostly for payments and settling things internally.
The Coinbase partnership is really about funding and bringing in institutional capital, but KlarnaUSD shows they’re thinking even bigger.
Klarna clearly wants to weave blockchain deeper into its products and the way it does business.
Analysts see these steps as Klarna trying to connect its traditional buy now, pay later services with new, next-gen financial rails.
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