Klarna Launches KlarnaUSD Stablecoin on Stripe Tempo Blockchain

TLDR

• Klarna launched KlarnaUSD, a US dollar-pegged stablecoin, becoming the first digital bank to issue a token on Stripe and Paradigm’s Tempo blockchain
• The stablecoin is currently live on Tempo’s testnet with mainnet launch planned for 2026, built by Bridge, a Stripe-owned stablecoin infrastructure provider
• Klarna will initially use the stablecoin internally to reduce costs on international payments within its own system, with no current plans for consumer-facing services
• Klarna CEO Sebastian Siemiatkowski previously opposed crypto but changed stance as digital currencies gained legitimacy and clearer regulations emerged
• The stablecoin market now stands at approximately $304 billion, led by Tether’s USDT at $184 billion and Circle’s USDC at $74.3 billion

Klarna announced Tuesday the launch of KlarnaUSD, a US dollar-pegged stablecoin. The Swedish buy-now-pay-later company became the first digital bank to issue a token on Tempo, the layer-1 blockchain developed by Stripe and Paradigm.

The stablecoin is currently running on Tempo’s testnet. The mainnet launch is scheduled for 2026.

Bridge, a Stripe-owned stablecoin infrastructure provider, built the token. The launch expands Klarna’s existing payments partnership with Stripe across 26 global markets.

Klarna CEO Sebastian Siemiatkowski said crypto has reached a stage where it is fast, low-cost, secure and built for scale. He called this the beginning of Klarna’s entry into crypto.

Internal Use Focus

A Klarna spokesperson told Cointelegraph the company is exploring stablecoin technology with an initial focus on internal uses. The primary goal is reducing costs for international payments within Klarna’s systems.

The company has no current plans to integrate stablecoins into its installment-payment services. Klarna specializes in online checkout, payments and short-term consumer credit through its buy-now-pay-later offerings.

The stablecoin works as a digital version of cash backed by short-term securities or cash-like assets. Its peg to the US dollar makes it more stable than cryptocurrencies like Bitcoin.

By using KlarnaUSD, Klarna can bypass traditional international payment systems including SWIFT. The stablecoin will initially help move money inside the company’s system for large global transfers.

CEO Stance Shift

This launch represents a reversal for Siemiatkowski, who previously opposed cryptocurrency. Earlier in 2025, he said Klarna would likely be the last major fintech to enter the space.

The CEO changed his position as digital currencies gained legitimacy and regulations became clearer. The move aligns with Klarna’s strategy to expand beyond buy-now-pay-later into a full digital bank.

Klarna shares have dropped over 30 percent since the company listed on the New York Stock Exchange in September 2025. Investors have questioned the loss-making fintech’s path to profitability.

Growing Stablecoin Market

The broader stablecoin sector continues to expand. The market now totals about $304 billion according to DefiLlama data.

Tether’s USDT leads with $184 billion in market capitalization. Circle’s USDC ranks second at $74.3 billion.

The GENIUS Act passed in the United States in July established clear stablecoin rules. This framework has driven a wave of new token launches.

MetaMask announced a stablecoin in August issued by Bridge and powered by liquidity platform M0. The mUSD token launched in September and currently has a market capitalization of $844 million.

Western Union said in October it would use Solana to power a new stablecoin settlement system. The company’s US Dollar Payment Token will launch in the first half of 2026.

Visa expanded its stablecoin settlement network in July by adding support for the Global Dollar token. The payment giant enabled transactions across Stellar and Avalanche blockchains.

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