Klarna, the global digital bank and payments platform, has partnered with Coinbase to raise USDC-denominated short-term funding from institutional investors.

The initiative adds stablecoins to Klarna’s traditional funding sources, which include consumer deposits, long-term loans, and commercial paper.

The company will leverage Coinbase’s crypto infrastructure to tap into a new pool of institutional investors seeking digitally native USD-like assets. Klarna’s Chief Financial Officer Niclas Neglén called the partnership “an exciting first step” that allows the company to diversify its capital base in ways not previously possible.

“Stablecoin connects us to an entirely new class of institutional investors,” Neglén said. “This is just the beginning of how digital assets can work alongside our traditional funding sources.”

Coinbase currently powers crypto infrastructure for over 260 companies globally and will provide the rails for Klarna’s USDC-based funding program. The stablecoin initiative is separate from Klarna’s upcoming consumer- and merchant-facing crypto offerings, which are expected to launch at pace in 2026.