Klarna’s Bold Move: Now Funding Institutions with Stablecoins via Coinbase

Klarna just rewired its money pipeline. The buy-now-pay-later giant is now tapping stablecoins for institutional funding, with Coinbase handling the crypto rails.

Bypassing the Old Guard

Forget waiting on traditional settlement cycles. This partnership lets Klarna access capital directly through digital dollar-pegged tokens. It's a quiet revolution in corporate treasury management—swapping bank wires for blockchain transactions.

The Institutional On-Ramp

Coinbase isn't just providing liquidity; it's acting as the regulated gateway. The exchange handles the conversion between fiat and stablecoins, ensuring compliance while moving millions in seconds. It turns volatile crypto markets into a predictable funding tool.

Why This Cuts Deep

This isn't a PR stunt. It's a cost and efficiency play. Stablecoin transactions settle 24/7, slashing the friction and fees of cross-border bank transfers. For a global operation like Klarna, those savings compound fast—even if it makes traditional bankers squirm.

The move signals a broader shift: mainstream finance is quietly building its off-ramp from legacy systems. They'll still smile for the cameras with bank CEOs, but they're increasingly moving money where the rails don't date back to the telegraph era. The future of corporate finance isn't just digital—it's programmable.

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.

According to Fortune, Swedish BNPL giant Klarna has partnered with Coinbase to accept capital from institutional investors in the FORM of stablecoins. Klarna’s CFO said stablecoins open access to an entirely new class of institutional funding.https://t.co/NL3bMIUjND

— Wu Blockchain (@WuBlockchain) December 21, 2025

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.

BREAKING: @Klarna INTRODUCES KLARNAUSD, “OUR FIRST @Stablecoin” – “WE’RE THE FIRST BANK TO LAUNCH ON @tempo, THE PAYMENTS BLOCKCHAIN BY @stripe AND @paradigm” pic.twitter.com/natmH81i0u

— DEGEN NEWS (@DegenerateNews) November 25, 2025

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 TO LAUNCH A STABLECOIN IN 2026

Klarna is entering crypto with KlarnaUSD, a new stablecoin set to launch on Tempo, the blockchain backed by Stripe and Paradigm. pic.twitter.com/fGjj34QOTL

— Coin Bureau (@coinbureau) November 25, 2025

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.