Klarna launches KlarnaUSD stablecoin on Tempo blockchain

Klarna, the Sweden-based digital bank, has officially announced the launch of KlarnaUSD, a US dollar stablecoin. This move makes it the latest global fintech company to tap blockchain rails for powering global transfers.

The token is set to go live on Tempo, a blockchain developed by Stripe and Paradigm specifically for payment use cases. The token will be issued through Bridge, Stripe’s stablecoin infrastructure product, and is currently in test mode. A full public rollout is planned for next year.

Introducing KlarnaUSD, our first @Stablecoin.

We’re the first bank to launch on @tempo, the payments blockchain by @stripe and @paradigm.

With stablecoin transactions already at $27T a year, we’re bringing faster, cheaper cross-border payments to our 114M customers.

Crypto is…

— Klarna (@Klarna) November 25, 2025

At launch, Klarna’s stablecoin will serve internal payment processes, with expansion to merchant and consumer use expected in the future. The rollout aims to streamline international payments and reduce costs for both consumers and merchants.

KlarnaUSD to help reduce the cost of cross-border payments

The fintech giant is also known for its “buy now, pay later” empire. Its CEO is known to dismiss crypto. However, earlier this year, CEO Sebastian Siemiatkowski announced that the fintech giant would embrace crypto. Siemiatkowski said at the time that Klarna was preparing to integrate crypto services and invited the community to weigh in on potential features.

To that end, Klarna stated that the token will help reduce the cost of cross-border payments, a space where global fees amount to roughly $120 billion annually. The partnership also builds on Klarna’s existing work with Stripe, which handles much of Klarna’s payment processing across 26 global markets.

Sebastian Siemiatkowski, co-founder and CEO of Klarna, stated, “Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale […] With 114 million customers and $112 billion in annual GMV [gross merchandise value], Klarna has the scale to change payments globally: with Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone.”

Klarna promises more crypto projects amidst  its 52-week lows

Klarna aims for its stablecoin to be used in everyday transactions, not just on crypto platforms. The company also hinted at more crypto-related partnerships in the press release to come in the weeks ahead.

The move also puts Klarna alongside other big names in the race. As reported by Cryptopolitan, PayPal launched its own stablecoin, and Stripe rolled out one after acquiring Bridge for $1.1 billion. Klarna is now joining the shortlist of mainstream payments firms that are bringing stablecoins into their core business.

Additionally, last month, remittances service provider Western Union announced that it would introduce a stablecoin on the Solana network with Anchorage Digital.

Klarna enters crypto with solid momentum. The company recently listed on the NYSE, raising $1.37 billion. In Q3, it posted 23% growth in gross merchandise volume and revenue of $903 million, beating analyst expectations.

Meanwhile,the stock is trading near its 52-week lows. However, Klarna’s liquidity remains extremely strong, giving the company room to push into new products, including its first stablecoin.

Stablecoin transaction volume exceeds $27 trillion

The announcement comes as stablecoin usage continues to surge. McKinsey estimates that annual stablecoin transaction volume already exceeds $27 trillion and could surpass traditional payment systems by the end of the decade.

Interest in the asset class has also grown since the US’s GENIUS Act, the first federal crypto law, and Europe is finally giving large firms the green light to build. 

Additionally, the stablecoin market cap jumped from $260 billion to $304 billion between July and November. This has prompted issuers to purchase $44 billion in US Treasury bills to comply with a federal mandate embedded in the GENIUS Act.

The Bank for International Settlements’ findings show that a $3.5 billion increase in stablecoin market cap reduces government borrowing costs by 0.025%. At the projected $3 trillion mark, this could save the US $114 billion a year, or $900 per household.

Treasury Secretary Scott Bessent predicted that stablecoins would reach $3 trillion by 2030, yielding $114 billion in annual government savings.

Also, the European Central Bank reported in November that the global stablecoin market surpassed $280 billion, led by Tether at $184 billion and USD Coin at $75 billion in market capitalization.

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