Key Takeaways
Why is Klarna launching a USD stablecoin instead of a euro-based one?
Klarna is following market reality, which shows that USD-denominated stablecoins dominate, with over $200 billion in circulation.
What are the main concerns about Klarna’s stablecoin adoption?
Critics question whether BNPL users actually want a Klarna-branded token for everyday payments, with skeptics arguing the move prioritizes yield generation.
Klarna is preparing to launch a U.S. dollar-backed stablecoin, Klarna USD, marking one of the most aggressive moves yet by a major European fintech into digital money.
Klarna announced on 25 November that the stablecoin will be launched on Tempo, the payments blockchain by Stripe and Paradigm
The Swedish company, best known for its buy-now-pay-later [BNPL] service and 150+ million global users, plans to integrate the token directly into its payments ecosystem as competition intensifies across the digital-payments sector.
The stablecoin will be fully backed by U.S. dollar reserves and redeemable at par, according to reports.
Klarna has not yet revealed a release date or specific regulatory framework, but the decision positions the company against not just crypto-native issuers like Tether and Circle, but also payments giants such as PayPal, which launched its own PYUSD stablecoin in 2023.
Klarna’s choice of USD raises deeper questions
The announcement underscores a growing shift: Europe’s largest fintechs increasingly rely on U.S.-denominated digital assets, even as euro-stablecoins remain marginal.
The move comes just weeks after the European Central Bank warned that euro-based stablecoins amount to just €395 million in circulation, compared to the $200+ billion in USD-denominated tokens.
Klarna issuing a dollar, not euro, will likely fuel debate about Europe’s competitiveness in digital finance and whether MiCA’s strict rules are inadvertently pushing innovation offshore.
The EU’s Markets in Crypto-Assets regulation, which took full effect in December 2024, imposes stringent reserve requirements and transparency standards that some critics argue favor established dollar-based players.
The timing also intersects with Klarna’s reported IPO preparations. The Swedish fintech has been positioning itself for a public listing, and a stablecoin launch could serve as both a revenue diversification play and a signal to investors that Klarna is evolving beyond traditional BNPL.
Competitive landscape: Fintech’s stablecoin arms race
Klarna isn’t alone among European fintechs eyeing stablecoins.
Revolut has explored similar initiatives, while traditional payments players like Stripe have acquired stablecoin infrastructure companies.
PayPal’s PYUSD, launched in August 2023, has achieved modest adoption but faces ongoing questions about merchant acceptance and consumer demand.
Contrarian voices
While early commentary framed the move as a major breakthrough, several crypto analysts and fintech watchers urged caution.
A user on X wrote:
“A stablecoin only works if people actually adopt it—Klarna still has to prove users want a BNPL-branded token for everyday payments.”
Another commentator questioned the broader implications for crypto builders:
“We were supposed to build blockchains for enterprises—now enterprises are building for each other. Are retail and token traders being sidelined?”
A more sarcastic take mocked the merger of BNPL and crypto culture:
“Nice, now people who lost everything on leverage can take out loans for their burritos in a crypto-friendly way.”
Others argued the move is less about innovation and more about yield. A user noted:
“Yield on deposits, not innovation. This is just treasury management with blockchain branding.”
The bottom line
Whether shoppers, merchants, and regulators embrace a Klarna-issued digital dollar will determine whether this becomes a landmark moment—or another fintech experiment in search of real-world demand.
The company has distribution advantages through its existing user base and merchant network, but converting BNPL customers into stablecoin users requires more than just technical infrastructure.
As one skeptical observer put it: “Klarna has 150 million users who signed up for installment payments, not crypto. Convincing them to hold a stablecoin is a different game entirely.”