In a move signaling the growing acceptance of digital currencies in mainstream finance, Klarna, the global digital bank and "buy now, pay later" service, has partnered with Coinbase to accept stablecoin funding from institutional investors. The partnership will allow institutions to provide capital to Klarna using stablecoins, rather than traditional cash instruments.
Klarna will utilize Coinbase's infrastructure to raise short-term funding from institutional investors, denominated in USD Coin (USDC). This collaboration enables Klarna to directly access USD-like funding, tapping into a new pool of institutional investors who may prefer blockchain's speed, transparency, and ease of settlement. Niclas Neglén, CFO of Klarna, stated that stablecoins connect Klarna to an entirely new class of institutional investors, diversifying their funding sources in ways previously impossible.
This partnership marks a significant step for Klarna into crypto finance. While Klarna has historically avoided direct exposure to crypto assets, its position has shifted notably in recent months. In November 2025, Klarna introduced its own dollar-pegged stablecoin, KlarnaUSD, launched on a new blockchain supported by Stripe and Paradigm. Klarna also recently partnered with Privy, owned by Stripe, to introduce crypto products.
The decision to partner with Coinbase reflects Klarna's broader strategy to integrate digital assets into its funding model. Stablecoins offer businesses the ability to move capital faster than traditional banking systems. This move aligns with a growing trend of companies experimenting with stablecoins as infrastructure rather than speculative assets.
Coinbase's role in the partnership highlights its growing position as a bridge between traditional finance and the crypto markets. Coinbase has focused on institution-oriented services through stablecoins and custody solutions. The exchange currently powers crypto infrastructure for over 260 businesses globally. Coinbase Custody holds approximately $50 million in USDC.
For institutional investors, the partnership offers operational advantages. Blockchain settlement reduces friction, shortens funding cycles, and improves transparency compared to traditional bank-based transfers. Stablecoin funding may also reduce costs and enhance liquidity management, particularly as interest rates on traditional borrowing increase.
Klarna's move to accept stablecoin funding represents a broader trend in the financial industry, with more companies exploring the use of stablecoins as infrastructure. Klarna's embrace of stablecoins signals a shift towards digital assets moving into mainstream finance.
Klarna has chosen Coinbase for its proven track record. This stablecoin funding is separate from Klarna's consumer and merchant-focused crypto and stablecoin endeavors, which are expected to be rolled out in 2026. Klarna will support major stablecoins like USDC.
The partnership with Klarna marks a further expansion of Coinbase's institutional services. Coinbase recently launched a custom stablecoin service for institutional clients and platform partners. This service enables qualified users to create and issue their own dollar-linked digital currencies using Coinbase's infrastructure.
