Klarna avoided the crypto industry for years but has now sharply pivoted. The company struck a deal with the Coinbase exchange to draw liquidity in stablecoins. These funds will support the interest-free installments that form the core of the Swedish firm’s business. Instead of relying solely on traditional bank deposits and bond issuances, the firm is now tapping into the crypto market’s liquid capital.
Access to New Sources of Liquidity
The Klarna operating model relies on providing interest-free loans, which requires a constant influx of cheap capital. According to CFO Niclas Neglen (Niclas Neglén), the stablecoin mechanism allows the company to secure liquidity faster and more affordably than through conventional interbank tools.
“Stablecoins connect us to an entirely new category of investors,” he explained.
For a public company that listed in September, this move offers a way to reduce dependence on the classic banking sector. Shifting settlements to the blockchain simplifies interaction with funds that prefer holding assets in digital form.
Expansion Into Web3
The current agreement cements a series of recent crypto initiatives by Klarna. In November, the firm launched its KlarnaUSD token on a blockchain developed with participation from Stripe and the Paradigm fund. Soon after, the company partnered with developer Privy to prepare consumer products based on crypto wallets.
The company is systematically embedding blockchain into its operational processes. Klarna is transforming from a passive observer into an active ecosystem participant, reshaping its financial logic to meet digital standards.
Legitimization of Crypto
The surge in stablecoin interest has swept across the entire fintech sector. Neobank SoFi and the financial arm of Sony launched similar projects. Even Block, which previously only recognized bitcoin, added support for stablecoins to its Cash App.
In July, U.S. President Donald Trump (Donald Trump) signed a law regulating stablecoins. The new regulatory framework removed the uncertainty that had prevented corporations from including tokens in official financial reporting.
Following the introduction of clear rules and Stripe’s acquisition of the startup Bridge for $1.1 B, working with digital dollars has become a standard tool for major businesses.
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