Rich by Coin

Klarna has announced a partnership with Coinbase to add stablecoins to its funding mix, expanding its potential sources of capital. The company plans to use Coinbase’s infrastructure to raise short-term funding denominated in the USDC stablecoin from institutional investors.

This new funding channel complements Klarna’s established sources, including consumer deposits, long-term loans and short-dated commercial paper. “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,” Klarna’s Chief Financial Officer Niclas Neglén said. The plans are still in development, and are separate from Klarna’s efforts to use crypto and stablecoin in its consumer and merchant-focused business, the company said.