Rich by Coin

Coinbase unveiled a Custom Stablecoins service that lets businesses create their own dollar-backed tokens, backed by flexible collateral including USDC and other USD-backed stablecoins, custodied by Coinbase. The platform provides issuance infrastructure with Coinbase handling the smart contract, security and chain management, along with a customizable brand identity that includes the asset name, ticker and visual identity, and mass global distribution to Coinbase’s user base. Reserves are held in segregated wallets custodied by Coinbase, enabling instant liquidity through zero-fee swaps between USDC and any Custom Stablecoin and allowing companies to earn rewards on their stablecoin’s supply.

Coinbase said that enterprises had to “rent” stablecoins for use, relying on third-party issuers and platforms to access stablecoin liquidity with limited control over the product experience, and added that the stablecoin-as-a-service solution changes that. In a separate project, Coinbase will power stablecoin funding for Klarna, enabling the global digital bank and flexible payments provider to raise short-term funding from institutional investors denominated in USDC via Coinbase’s infrastructure. Klarna said it chose to collaborate with Coinbase because of the company’s proven track record in powering crypto infrastructure for more than 260 businesses. “This is an exciting first step into a new way to raise funding,” said Niclas Neglén, Klarna’s chief financial officer, “Stablecoin connects us to an entirely new class of institutional investors, and gives us the potential to diversify our funding sources in ways that simply weren’t possible a few years ago.”