Klarna Adds Stablecoin Option for Institutional Funding via Coinbase

TLDR

• Klarna will raise short-term institutional funds using USDC via Coinbase infrastructure.
• KlarnaUSD stablecoin runs on Stripe’s Tempo blockchain and remains in testnet.
• Klarna’s USDC funding will operate alongside deposits and commercial paper.
• Coinbase supports over 260 businesses with crypto infrastructure services.

Klarna has taken a significant step into the crypto space by partnering with Coinbase to enable institutional funding through stablecoins. The Swedish fintech firm, widely known for its “Buy Now, Pay Later” service, announced on December 21, 2025, that it will use USDC to raise short-term capital from institutional investors. This move signals Klarna’s ongoing push to diversify its funding sources through blockchain-based financial infrastructure.

Klarna Taps Coinbase for Stablecoin-Based Institutional Funding

Klarna will utilize Coinbase’s crypto-native infrastructure to raise short-term funding in USDC. According to the company, this initiative will complement Klarna’s existing funding mechanisms, which include consumer deposits, commercial paper, and long-term debt.

Niclas Neglén, Klarna’s Chief Financial Officer, described the development as an opportunity to connect with a new class of institutional investors. He emphasized that stablecoin funding offers funding diversification options that were unavailable until recently. Klarna selected Coinbase for the initiative due to its established experience in delivering enterprise-grade crypto infrastructure.

Coinbase currently works with over 260 institutional clients, offering services such as secure custody, blockchain-based settlement, and digital asset infrastructure. Klarna aims to benefit from these services while maintaining operational oversight and regulatory compliance.

Stablecoin Strategy Marks Klarna’s Broader Crypto Ambitions

The stablecoin-based funding project remains under development and is distinct from Klarna’s consumer and merchant-facing crypto plans. Klarna clarified that this initiative focuses strictly on institutional funding and does not currently affect its retail services.

The company noted that the project depends on various external factors, including regulatory approvals, market readiness, and technical implementation. Klarna acknowledged these risks but indicated confidence in the long-term potential of blockchain-based capital markets.

Klarna’s move aligns with a broader trend of financial institutions integrating stablecoin technology for liquidity, faster settlement, and cross-border efficiency. The GENIUS Act, passed in July in the United States, has provided regulatory clarity for stablecoin issuance and usage, contributing to renewed institutional interest.

KlarnaUSD Stablecoin Launches on Stripe’s Tempo Blockchain

Recently, Klarna launched a US dollar-pegged stablecoin called KlarnaUSD. The token runs on Tempo, a new layer-1 blockchain developed by Stripe and Paradigm. Tempo remains in its testnet phase, with a mainnet launch planned for 2026.

The stablecoin was developed by Bridge, a Stripe-owned stablecoin infrastructure provider. This initiative builds on Klarna’s longstanding partnership with Stripe and reflects ongoing efforts to incorporate blockchain into its global payment network.

Klarna’s expansion into the digital asset sector through both stablecoin issuance and institutional funding strategies highlights its evolving role in fintech. These efforts suggest an increasing alignment between traditional finance and blockchain infrastructure.

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