Coinbase Launches Stablecoin-as-a-Service to Help Businesses Create Their Own Tokens

Core Insights - Coinbase has launched a program enabling businesses to create their own stablecoins, enhancing control over stablecoin liquidity and product experience [5] - The company is also collaborating with Klarna to facilitate stablecoin funding, allowing Klarna to raise short-term funding from institutional investors using USDC [6][7] Group 1: Coinbase Custom Stablecoins Service - The new Coinbase Custom Stablecoins service allows businesses to create custom stablecoins backed by flexible collateral, including USDC [2] - The platform provides issuance infrastructure, with Coinbase managing smart contracts, security, and chain management [3] - Companies can customize their stablecoins' brand identity, including asset name, ticker, and visual identity, and benefit from global distribution to Coinbase's user base [3] Group 2: Features and Benefits - Coinbase holds reserves in segregated wallets and allows companies to earn rewards on their stablecoin supply [4] - Instant liquidity is ensured through zero-fee swaps between USDC and any Coinbase Custom Stablecoin [4] - The service aims to eliminate the need for enterprises to rely on third-party issuers for stablecoin liquidity [5] Group 3: Collaboration with Klarna - Klarna has chosen to collaborate with Coinbase for stablecoin funding due to Coinbase's proven track record in providing crypto infrastructure for over 260 businesses [6] - The partnership is seen as a way to connect Klarna with a new class of institutional investors and diversify funding sources [7] - This initiative is part of Coinbase's broader strategy to build an "Everything Exchange" that includes trading and financial services [7]