Klarna has submitted applications to federal and state regulators to establish a U.S. bank subsidiary, marking a significant expansion of its operations in the world's largest consumer market.

The Stockholm-listed fintech, best known for its buy now, pay later offerings, is seeking to deepen its integration into the traditional banking system.

This move aligns with a broader trend among fintech and crypto firms pursuing entry into regulated banking structures to enhance their service capabilities and stability.

The application represents a strategic shift for Klarna, aiming to move beyond its core BNPL business model.

By establishing a bank subsidiary, the company seeks to leverage the regulatory framework to offer a wider range of financial products and services.

This development underscores the increasing convergence between digital-native payment platforms and traditional banking institutions, as fintechs look to secure more robust operational foundations.