Klarna Announces Its First Stablecoin As It Enters the Crypto Market

Global digital bank and flexible payments provider Klarna has announced the launch of its first stablecoin, KlarnaUSD. The move marks a major strategic shift for the company, whose CEO, Sebastian Siemiatkowski, was previously one of the more outspoken critics of cryptocurrencies.

Klarna is now the first bank to issue a stablecoin on the new Tempo blockchain, a payments-focused network created by Stripe and Paradigm. The company says the initiative positions it to compete directly with long-standing payment networks as the stablecoin industry grows rapidly.

A Growing Market And A New Direction for Klarna

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. In October 2025, total stablecoin market capitalization crossed $300 billion for the first time.

Analysts estimate that cross-border payments alone generate around $120 billion in annual fees. Klarna believes stablecoins can dramatically reduce these costs for both consumers and businesses.

Siemiatkowski emphasized that Klarna’s global scale and Tempo’s infrastructure give the company a unique opportunity to challenge legacy systems.He stated:“With 114 million customers and $112 billion in annual GMV, Klarna has the scale to change payments globally. With Tempo’s infrastructure, we can challenge legacy networks and make payments faster and cheaper for everyone.”

He added that crypto technology has reached a turning point:“Cryptocurrency has finally become fast, inexpensive, secure, and scalable. This is the beginning of Klarna’s foray into crypto, and I’m excited to partner with Stripe and Tempo to help shape the future of payments.”

Launch Timeline And Strategic Partnerships

The new stablecoin is being built using Open Issuance by Bridge, a stablecoin infrastructure developed by Stripe. KlarnaUSD is currently running on a testnet and is not available for public use, allowing the company to conduct extensive testing ahead of its planned Tempo mainnet launch in 2026.

The project also strengthens Klarna’s existing strategic partnership with Stripe, which already powers payment processing for the company across 26 international markets.

The broader payments industry is rapidly adapting as well. Visa recently expanded support for stablecoins across four networks, while Western Union is testing its own stablecoin technology and plans to launch a branded stablecoin in the first half of 2026.

Interest in the asset class has also grown since US President Donald Trump signed the GENIUS Act — the United States’ first federal crypto law.