Klarna Launches KlarnaUSD Stablecoin on Tempo Blockchain to Streamline Cross-Border Payments
Klarna, the Sweden-based digital bank, has unveiled KlarnaUSD, a US dollar-pegged stablecoin, marking its entry into blockchain-powered financial services. The token will operate on Tempo, a payments-focused blockchain developed by Stripe and Paradigm, with issuance handled through Stripe's Bridge infrastructure. Currently in test mode, KlarnaUSD is slated for full public release in 2026.
The stablecoin will initially facilitate internal payments before expanding to merchant and consumer use cases. This strategic move aims to capitalize on the $27 trillion annual stablecoin transaction market, offering Klarna's 114 million customers faster and cheaper cross-border payment solutions. The launch signals a notable pivot for Klarna, whose CEO Sebastian Siemiatkowski had previously expressed skepticism toward cryptocurrency before announcing plans for crypto integration earlier this year.
