SAN FRANCISCO — Coinbase has launched a new service aimed at helping businesses create and manage their own stablecoins, while separately partnering with buy now, pay later provider Klarna to support stablecoin-denominated funding, the cryptocurrency exchange said.
In a blog post, Coinbase said its new Custom Stablecoins program allows companies to issue branded stablecoins backed by flexible collateral, including USDC and other U.S. dollar-backed stablecoins. The assets are custodied by Coinbase, which provides the underlying issuance infrastructure, according to Coinbase.
Under the program, Coinbase said it manages smart contracts, security and blockchain operations, while companies can customize the asset’s name, ticker and visual identity. The stablecoins can also be distributed globally through Coinbase’s user base, the company said.
Where Reserves Will be Held
Coinbase said it will hold reserves in segregated wallets, allow issuers to earn rewards on their stablecoin supply, and provide instant liquidity through zero-fee swaps between USDC and any Coinbase-issued custom stablecoin.
“For too long, enterprises have had to ‘rent’ stablecoins for use, relying on third-party issuers and platforms to access stablecoin liquidity with limited control over the product experience,” Coinbase said in a statement, describing the offering as a “stablecoin-as-a-service” model.
Support for Klarna
Separately, Coinbase said it will support stablecoin funding for Klarna, enabling the global payments firm to raise short-term funding from institutional investors denominated in USDC using Coinbase’s infrastructure.
Klarna said it selected Coinbase because of the exchange’s experience providing crypto infrastructure to more than 260 businesses.
“This is an exciting first step into a new way to raise funding,” Klarna Chief Financial Officer Niclas Neglén said in a statement. “Stablecoin connects us to an entirely new class of institutional investors, and gives us the potential to diversify our funding sources in ways that simply weren’t possible a few years ago.”
Continued Expansion
The moves come as Coinbase continues to expand beyond trading. Executives have said the company is building an “everything exchange” that includes financial services and developer tools designed to support on-chain applications and drive broader network demand.
