Klarna's CEO Turns Crypto Skepticism into a Stablecoin Innovation

Klarna, a Swedish provider of digital banking and payment solutions, has introduced its inaugural stablecoin, KlarnaUSD. This marks a notable shift for the company, whose CEO previously questioned the practicality of cryptocurrencies. Pegged to the U.S. dollar, KlarnaUSD is developed using Open Issuance by Bridge—a stablecoin infrastructure platform owned by Stripe—and will first appear on Tempo, a payment-focused blockchain created by Stripe and Paradigm. The stablecoin is currently available on Tempo’s testnet for internal evaluation and integration, with a public release planned for 2026

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This development makes

the first banking institution to launch a stablecoin on Tempo, a network optimized for rapid and affordable transactions. Klarna’s CEO, Sebastian Siemiatkowski, who once doubted the value of crypto, now describes the move as a strategic effort to address the inefficiencies of international payments, which are estimated to incur $120 billion in yearly fees. , Klarna’s objective is to lower these expenses for its 114 million users and $112 billion in annual gross merchandise volume (GMV).

The introduction of KlarnaUSD coincides with a surge in stablecoin usage,

that annual stablecoin transaction volumes have surpassed $27 trillion, approaching the scale of traditional payment networks. Klarna’s collaboration with Stripe builds on an existing partnership across 26 countries, further embedding blockchain technology into its payment systems. The company stated that KlarnaUSD will initially be used internally for purposes like cross-border settlements and processing refunds, with plans to open it up to the public in the future.

Klarna’s entry into the crypto sector mirrors a broader movement among fintech firms and established banks to leverage stablecoins for more efficient transactions. Rivals such as PayPal and Western Union have also launched stablecoin products, while regulatory measures like the U.S. GENIUS Act and Europe’s MiCA are providing clearer compliance standards. The CEO of Klarna pointed to the evolution of crypto infrastructure,

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The testnet phase for KlarnaUSD enables the company to fine-tune its integration with Tempo’s system, which is designed for immediate settlements and high transaction capacity. Klarna’s executives have suggested that more partnerships in the crypto industry may follow, indicating a deeper commitment to digital assets. With stablecoins such as Tether’s

and Circle’s leading the $358 billion stablecoin sector, KlarnaUSD’s launch highlights the intensifying competition to transform the global payments landscape.