Klarna's Stablecoin Bypasses SWIFT to Cut Cross-Border Costs

Klarna, the Swedish fintech giant known for its buy-now, pay-later services, has entered the stablecoin arena with the launch of KlarnaUSD, a U.S. dollar-pegged token built on Stripe and Paradigm's Tempo blockchain. This move positions the company as the first digital bank to issue a stablecoin on Tempo, a layer-1 blockchain designed for high-throughput, low-cost payments. The stablecoin is currently operational on Tempo's testnet, with a mainnet rollout slated for 2026. Klarna's initiative leverages Bridge, a Stripe-owned stablecoin infrastructure provider, to build and manage the token, expanding its existing partnership with Stripe across 26 global markets according to reports.

The stablecoin's immediate focus is internal use, aiming to reduce costs for cross-border transactions within Klarna's operations. A company spokesperson stated that KlarnaUSD will initially bypass traditional systems like SWIFT to streamline large international transfers. While the firm has no current plans to integrate the token into its consumer-facing services, CEO Sebastian Siemiatkowski emphasized that the stablecoin marks the beginning of Klarna's broader crypto strategy. Siemiatkowski cited the technology's evolution into a "fast, low-cost, secure, and scalable" system as a key driver for the shift. This reversal aligns with the growing legitimacy of digital assets and clearer regulatory frameworks, such as the U.S. GENIUS Act, which has spurred a wave of new stablecoin launches.

The stablecoin market, now valued at approximately $304 billion, has seen rapid growth, with Tether's USDT ($184 billion) and Circle's USDC ($74.3 billion) dominating the landscape. KlarnaUSD joins a surge of institutional interest, including MetaMask's mUSD, Western Union's Solana-based stablecoin project, and Visa's expanded support for stablecoin settlements. Cross-border payment inefficiencies, which cost an estimated $120 billion annually, present a significant opportunity for blockchain-based solutions. Industry estimates suggest that stablecoins could reduce these fees by up to 90% compared to traditional networks.

Klarna's entry into stablecoins also reflects its strategic push to transition from a BNPL-focused company to a full-fledged digital bank. The firm, which listed on the New York Stock Exchange in September 2025, has faced pressure to improve profitability amid a 30% decline in its stock price since the IPO. By leveraging blockchain infrastructure, Klarna aims to diversify its revenue streams and challenge legacy payment systems. The company's 114 million customers and $112 billion in annual gross merchandise volume provide a substantial foundation for testing and scaling the technology.

Regulatory developments are further accelerating adoption. The U.S. GENIUS Act, enacted in July, established a framework for stablecoin oversight, while the European Union's MiCA regime moves toward implementation according to industry analysis. These measures are reducing uncertainty for firms like Klarna, enabling them to experiment with digital assets in a structured environment. Meanwhile, global institutions, including JPMorgan and Citi, are exploring tokenized deposit systems, and governments such as Kyrgyzstan and Wyoming have launched pilot projects for stablecoins.

As KlarnaUSD transitions to mainnet in 2026, its success could signal a broader shift in how fintechs approach cross-border payments. While the stablecoin is not intended to replace existing methods, its potential to cut costs and improve efficiency may redefine global financial infrastructure. With competitors like Western Union and Visa also entering the space, the race to dominate stablecoin-based payments is intensifying, underscoring the transformative role of blockchain in modern finance.