"Klarna's business model revolves around supplying consumers with zero-interest loans to buy goods, an arrangement known as buy-now-pay-later, or BNPL. The Swedish firm earns money primarily by charging merchants a small fee to offer its services, and acquires capital via a banking arm that accepts deposits and issues bonds. Its partnership with Coinbase will let institutional investors front capital denominated in stablecoins, a type of cryptocurrency pegged to underlying assets like the U.S. dollar."
"Friday's announcement is the latest foray into crypto from Klarna, which went public in September. In late November, Klarna launched its own stablecoin, KlarnaUSD, on a new blockchain backed by the fintech giant Stripe and the crypto venture capitalist Paradigm. About two weeks later, the company said it was working with the crypto wallet developer Privy, which is owned by Stripe, to work on potential crypto products for its users."
Klarna is partnering with Coinbase to accept stablecoin funds from institutional investors. Klarna supplies consumers with zero-interest loans to buy goods under a buy-now-pay-later model and earns revenue by charging merchants fees. The firm acquires capital through a banking arm that accepts deposits and issues bonds. The Coinbase partnership will allow institutional investors to front capital denominated in stablecoins pegged to assets like the U.S. dollar. Klarna launched KlarnaUSD on a blockchain backed by Stripe and Paradigm and is working with Privy on potential crypto products. Other fintechs and banks are also launching or exploring stablecoins as faster, cheaper payment rails.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]