Klarna Enters the Stablecoin Market with KlarnaUSD on Tempo Blockchain

Swedish fintech leader Klarna is making a significant move into the stablecoin realm, representing one of its most notable strategic changes since going public.

Key Takeaways

Klarna is launching a U.S. dollar-backed stablecoin called KlarnaUSD in 2026 on the Tempo blockchain.
This move aligns Klarna with other major payment firms, including PayPal and Stripe, as they enter the stablecoin market.
KlarnaUSD is designed to facilitate faster and cheaper global payments, particularly for everyday commerce and cross-border transactions.
The stablecoin market continues to grow, with increasing institutional adoption and various global initiatives underway.

Klarna Enters the Stablecoin Market with KlarnaUSD on Tempo Blockchain

The company announced on Tuesday its plans to launch KlarnaUSD, a U.S. dollar-backed token aimed at facilitating faster and more cost-effective global payments, especially as the stablecoin space continues to grow amid increasing regulatory scrutiny.

Klarna's Stablecoin Initiative: KlarnaUSD Launching in 2026

KlarnaUSD is currently undergoing testing and is set to debut on the Tempo blockchain in 2026.

Developed by Stripe and Paradigm, Tempo is specifically focused on payment solutions and serves as the foundation for Stripe's blockchain infrastructure product, Bridge, which will manage the token issuance.

Klarna revealed that the new asset will be fully backed by U.S. dollars and is designed for everyday commerce, particularly cross-border transactions that are often slow and costly for many users.

This decision positions Klarna among an emerging group of global payment firms that are launching their own stablecoins.

Following the lead of PayPal, which launched its U.S. dollar token last year, and Stripe's market entry after its $1.1 billion acquisition of Bridge, Klarna is now the first bank to incorporate Stripe’s stablecoin technology for global payment settlements. This expands on their existing collaboration, where Stripe processes a substantial portion of Klarna’s transactions worldwide.

Klarna's presence is particularly significant as its U.S. operations represent its largest market, providing a vast user base for the potential stablecoin rollout.

The decision comes after CEO Sebastian Siemiatkowski, who had previously expressed skepticism about cryptocurrencies, acknowledged a shift in the firm's approach. He stated that digital assets have now reached a level of reliability that makes them "fast, low-cost, secure, and built for scale."

With over 114 million users and $112 billion in gross merchandise value processed in the past year, Klarna now has the capabilities needed to trial blockchain payments globally. This announcement follows the company’s unexpectedly strong quarterly earnings, marking its first report since the anticipated listing in September.

Growing Institutional Interest in Stablecoins as Market Surpasses $300 Billion

The launch of KlarnaUSD comes during a significant wave of institutional interest in stablecoins. Notably, Western Union plans to roll out a dollar-backed token on Solana in 2026, with the goal of cutting down on international remittance fees, which amount to around $120 billion annually.

Visa has reported more than $140 billion in stablecoin and crypto payment volumes since 2020 and intends to support additional tokens across various blockchains.

Furthermore, Cash App has recently introduced Lightning payments and anticipates the integration of stablecoin transfers to its platform soon.

JP Morgan and Citi are actively developing tokenized deposit systems, while major tech firms in China are experimenting with deposit-token models that comply with local regulations.

Governments are also progressing in this space. Kyrgyzstan has launched a national som-backed stablecoin this year as part of its Central Bank Digital Currency (CBDC) trials.

In the United States, Wyoming has issued 700,000 state-backed stablecoins over seven blockchains, marking a pioneering initiative. South Korea is preparing new legislation for a won-backed stablecoin, and Japanese megabanks aim to issue digital tokens worth one trillion yen over the next three years.

Currently, the stablecoin market is valued at approximately $309 billion, according to DefiLlama, representing a remarkable increase of over 6,000% since late 2019.

Stablecoin Market Overview

Leading the market is Tether with $184 billion in circulation, followed by USDC at $74 billion.

Citigroup analysts predict that stablecoin issuance may reach $1.9 trillion by 2030 in their baseline scenario, indicating a growing institutional demand.

As Klarna prepares to enter this dynamic sector, it joins a rapidly expanding landscape of banks, payment processors, and technology platforms transitioning to blockchain-based settlement solutions.

Klarna has emphasized that KlarnaUSD will not replace existing payment methods; instead, it aims to offer a quicker alternative for users transferring funds across borders or between platforms.