Klarna (KLAR), a digital bank and buy now, pay later platform, has partnered with crypto exchange Coinbase (COIN) to introduce a new funding option using USDC (USDC-USD) stablecoins. Instead of relying only on traditional financing methods, Klarna plans to raise short-term funds from institutional investors in USDC through Coinbase’s blockchain-based infrastructure. This gives Klarna access to crypto-focused investors who usually don’t participate in regular debt or deposit markets.
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According to Klarna’s CFO, stablecoins give the company a way to reach a whole new group of institutional investors and diversify its funding sources beyond things like consumer deposits, long-term loans, and short-term commercial paper. This funding strategy is still being developed and is separate from Klarna’s crypto and stablecoin products for consumers and merchants, which it plans to grow next year.
In fact, Klarna recently launched its first stablecoin, KlarnaUSD, which is expected to go live on the Tempo blockchain in 2026. The company also signed a research deal with Privy to explore possible digital wallet solutions. Interestingly, Klarna is one of several fintech firms, including PayPal (PYPL) and SoFi (SOFI), that are using stablecoins and blockchain settlement to help move money faster and more affordably.
Is KLAR Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on KLAR stock based on 12 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average KLAR price target of $47.71 per share implies 55.3% upside potential.
