Coinbase Powers Klarna’s Strategic Pivot to Crypto Funding with USDC Integration
In a significant institutional move, Klarna has partnered with Coinbase to enable USDC stablecoin deposits from institutional investors, marking a strategic shift toward diversifying its capital base with cryptocurrency-powered funding. This collaboration leverages Coinbase's robust infrastructure to onboard large-scale stablecoin holders, providing Klarna with an alternative to traditional financing sources. The development follows Klarna's previously announced ambitions to launch its own USD-backed stablecoin, highlighting the buy-now-pay-later fintech's deepening commitment to integrating digital assets into its core financial operations. This partnership not only strengthens Coinbase's position as a critical infrastructure provider for traditional finance entering the crypto space but also signals a growing trend of major fintech players seeking stable, efficient capital through blockchain-based solutions. As of December 2025, this move is viewed as a bullish indicator for the maturation of cryptocurrency in institutional finance, demonstrating practical utility beyond speculation and paving the way for broader adoption of stablecoins in corporate treasury and funding strategies.
Klarna Taps Coinbase to Add USDC Funding for Loans in Institutional Push
Klarna is partnering with Coinbase to accept USDC stablecoin deposits from institutional investors, marking a strategic shift toward crypto-powered funding. The buy-now-pay-later fintech will use Coinbase's infrastructure to onboard large-scale stablecoin holders, diversifying its capital base beyond traditional sources.
The move follows Klarna's earlier plans to launch its own USD-backed stablecoin, but USDC adoption arrives first—leveraging the $78B market cap asset's growth. Klarna, which has historically kept crypto at arm's length, now targets institutional liquidity pools rather than retail crypto users.
This pivot reflects broader fintech trends: payment processors increasingly treat stablecoins as treasury assets while avoiding volatile crypto exposure. USDC's 85% supply growth in 2025 made it the logical choice for Klarna's balance sheet expansion.
Solana Price Prediction: Can SOL Reverse The Massive 40% YoY Price Collapse?
Solana's price action has been dismal, with three consecutive months of red candles and a 40% year-over-year collapse. Despite this, SOL remains on track to surpass ethereum in annual revenue for the first time by the end of 2025, thanks to a strong start earlier in the year. Active traders have plummeted 87% from January highs, signaling a stark decline in network activity.
Coinbase CEO Brian Armstrong publicly endorsed Solana, a gesture coinciding with the platform's recent decision to list all Solana-based tokens. This MOVE underscores Solana's entrenched position in crypto adoption, even as its price struggles to hold critical support levels.
Technically, SOL is clinging to a make-or-break range between $144 and $120. A breakdown below $120 WOULD violate an 18-month support level, potentially triggering further downside. The current bounce has reset RSI to neutral territory, but without sustained momentum, another leg down appears imminent.
Coinbase Escalates Regulatory Fight With Lawsuit Against 3 States
Coinbase Global Inc. has launched a federal lawsuit against Michigan, Illinois, and Connecticut, challenging state regulators' classification of prediction markets as illegal gambling. The exchange argues these markets should fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gaming authorities.
The legal battle centers on whether prediction market contracts qualify as derivatives under the Commodity Exchange Act. Coinbase seeks declaratory and injunctive relief to prevent what it calls a patchwork of state regulations that could block federally approved products from reaching consumers.
Connecticut's recent cease-and-desist orders against platforms like Kalshi, Robinhood, and Crypto.com have intensified the conflict. State regulators claim certain event contracts resemble unlicensed sports betting, prompting Coinbase's preemptive legal strike.
