#How is Klarna Expanding Its Funding Sources?
Klarna, the prominent global digital bank and payments platform, is making a significant move to diversify its funding. The company has joined forces with Coinbase to secure short-term funding using USDC from institutional investors. This new partnership marks the introduction of stablecoins into Klarna's range of funding options, which have traditionally relied on consumer deposits, long-term loans, and commercial paper.
By leveraging Coinbase's digital infrastructure, Klarna aims to attract a new class of institutional investors who are interested in assets that resemble US dollars but are digitally native. The company’s Chief Financial Officer has acknowledged this collaboration as an initial step toward broadening its capital base in innovative ways. He emphasizes that the integration of stablecoins connects Klarna with institutional investors who previously may not have considered such assets.
Coinbase’s role in providing the necessary infrastructure for Klarna's USDC-based funding program is crucial. Currently, Coinbase supports crypto operations for over 260 companies globally, enhancing Klarna's ability to tap into digital currency markets effectively. Notably, this stablecoin initiative is expected to operate independently from Klarna's future crypto offerings intended for consumers and merchants, which are scheduled to launch at a brisk pace in 2026.