Klarna Launches Its Stablecoin— How Will It Change Payments?

Klarna has launched its first stablecoin, KlarnaUSD, marking a major shift for the global digital bank and BNPL provider. 

Klarna becomes the first regulated payments provider to launch a stablecoin on Tempo, a payments-focused blockchain developed by Stripe and Paradigm. The firm says the move could help reduce the world’s $120 billion annual cross-border payment fees.

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Understanding KlarnaUSD

KlarnaUSD is a US-dollar-backed stablecoin issued through Open Issuance by Bridge. It’s a Stripe company that handles compliance, reserve management, and redemption. 

Klarna gains a branded digital asset while avoiding the operational burden of running its own stablecoin program.

The launch follows new data from McKinsey showing stablecoin transactions have reached $27 trillion a year. The firm plans to integrate KlarnaUSD across its network, which processes $112 billion in GMV for 114 million users.

The token is built for payments, not trading. KlarnaUSD runs on Tempo’s testnet today with a planned mainnet launch in 2026. Tempo offers fast settlement, high throughput, and low fees.

“Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale. This is the beginning of Klarna in crypto, and I’m excited to work with Stripe and Tempo to continue to shape the future of payments,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna.

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How KlarnaUSD Will Work

Klarna plans to use the stablecoin inside its own payment stack before offering public access. Initial uses include merchant payouts, cross-border settlement, refunds, and internal funding flows. 

These processes currently rely on slow correspondent-banking systems and card-network settlement cycles.

By issuing KlarnaUSD through Bridge, Klarna receives a fully backed, redeemable stablecoin without managing reserves or regulatory reporting. 

Tempo’s architecture then moves KlarnaUSD like digital cash, enabling instant settlement across markets. Klarna expects this design to reduce friction across its 26 supported countries.

Why Klarna Is Launching a Stablecoin

According to the firm, cross-border payments remain costly and inefficient. The company cites the global $120 billion fee burden as a key reason for adopting stablecoin rails. Faster settlement also improves cash flow for merchants using Klarna’s BNPL and checkout services.

Klarna’s move aligns with a broader push among large retailers and fintech firms exploring stablecoins to bypass traditional rails. 

The partnership builds on Klarna’s long-standing relationship with Stripe, which already powers payments infrastructure across many of Klarna’s markets.

KlarnaUSD is not yet open to users. The company plans to reveal additional crypto initiatives and partners in the coming weeks.