Klarna's CEO Transforms Crypto Doubt into Stablecoin Solution

Klarna, the Swedish digital banking and payments provider, has launched its first stablecoin, KlarnaUSD, marking a significant pivot for a company whose CEO once dismissed cryptocurrency as a viable financial tool. The stablecoin, pegged to the U.S. dollar, is built on Open Issuance by Bridge-a Stripe-owned stablecoin infrastructure platform-and will debut on Tempo, a blockchain designed for payments by Stripe and Paradigm. The public launch is scheduled for 2026, with the token currently live on Tempo's testnet for internal testing and integration according to reports.

The move positions Klarna as the first bank to issue a stablecoin on Tempo, a platform tailored for high-speed, low-cost transactions. Klarna's CEO, Sebastian Siemiatkowski, who previously expressed skepticism toward crypto, now frames the initiative as a strategic response to inefficiencies in global cross-border payments, which generate an estimated $120 billion in annual fees. According to analysis, Klarna aims to reduce these costs for its 114 million customers and $112 billion in annual gross merchandise value (GMV).

The stablecoin's rollout aligns with a broader surge in stablecoin adoption, with McKinsey estimating that stablecoin transactions now exceed $27 trillion annually-nearly rivaling legacy payment networks. Klarna's partnership with Stripe deepens an existing relationship that spans 26 markets, further integrating blockchain infrastructure into its payment ecosystem.

The company emphasized that KlarnaUSD will initially focus on internal use cases, such as cross-border settlements and refunds, before expanding to public access .

Klarna's foray into crypto reflects a growing trend among fintechs and traditional banks to harness stablecoins for faster, cheaper transactions. Competitors like PayPal and Western Union have also ventured into stablecoin offerings, while regulatory frameworks such as the U.S. GENIUS Act and Europe's MiCA are providing clearer guidelines for compliance . Klarna's CEO highlighted the maturation of crypto infrastructure, stating, "Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale".

The stablecoin's testnet phase allows Klarna to refine its integration with Tempo's architecture, which promises instant settlements and high throughput. Klarna's leadership has hinted at future partnerships in the crypto space, signaling a broader commitment to digital assets . With stablecoins like Tether's USDT and Circle's USDC dominating the $358 billion market, KlarnaUSD's entry underscores the competitive race to redefine global payments.