Fintech company Klarna has announced its plans to introduce a USD-backed stablecoin, namely KlarnaUSD, positioning itself as the latest payment firm to expand into digital assets.
This represents a substantial shift for Klarna, whose CEO was previously a crypto sceptic. Also, the decision to launch KlarnaUSD follows recent data from McKinsey, with stablecoin transactions being projected to top USD 27 trillion a year. It could exceed legacy payment networks before the end of the decade.
Additionally, the initiative comes amid regulators across the US and Europe creating new rules for digital assets to better regulate the sector. Similar to other stablecoin companies, Klarna is anticipated to benefit from frameworks like the GENIUS Act in the US and MiCA in Europe.
Klarna joins stablecoin
The initiative positions Klarna among the first banks to roll out a stablecoin on Tempo, a new independent blockchain introduced by Stripe and Paradigm that was developed for payments specifically. Considering that cross-border payments are expected to generate approximately USD 120 billion in transaction fees annually, the company views stablecoins as a way to minimise costs for both consumers and merchants.
At the time of writing, KlarnaUSD was still in testing and not yet available publicly, with Klarna planning a mainnet launch in 2026. By having it live on Tempo’s testnet, Klarna benefits from early access to its infrastructure for testing, prototyping, and integration.
Moreover, the collaboration expands an already extensive relationship between Klarna and Stripe, which covers payments infrastructure across Klarna’s 26 markets worldwide. This comes as the first step in Klarna publicly sharing crypto initiatives. The company intends to unveil its next partner in the upcoming period.
Talking about this strategic entry into the stablecoin market, Sebastian Siemiatkowski, co-founder and CEO of Klarna, said that with the company’s scale and Tempo’s infrastructure, the two organisations plan to challenge old networks and make payments more efficient and cost-effective for everyone involved. As crypto is at a stage where it is now fast, low-cost, secure, and built for scale, Klarna aims to scale its presence in this sector by working closely with other industry participants.
