The Swedish financial technology company Klarna, renowned for its “buy now, pay later” services, announced the introduction of KlarnaUSD. This new stablecoin is pegged to the US dollar and is designed to make payments faster and cheaper. This move represents a significant change in direction for CEO Sebastian Siemiatkowski, who had previously been dismissive of cryptocurrencies.
Sebastian Siemiatkowski, co-founder and CEO of Klarna, commented on the company’s new initiative:
“With 114 million customers and $112 billion in annual GMV, Klarna has the scale to change payments globally: with Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone. Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale. This is the beginning of Klarna in crypto, and I’m excited to work with Stripe and Tempo to continue to shape the future of payments.”
This initiative positions Klarna as the first bank to introduce a stablecoin on Tempo, an independent, specialized blockchain designed for payments and recently launched by Stripe and Paradigm. Given that cross-border payments currently incur approximately $120 billion in annual transaction fees, Klarna views stablecoins as a critical tool for significantly cutting costs for both consumers and businesses.
Stablecoin transactions have grown to over $27 trillion annually. With new regulatory clarity emerging in the United States and Europe, major corporations are gaining the confidence to develop their own offerings. Klarna is quickly capitalizing on this growing market.
Infrastructure and Competitive Landscape
The stablecoin is being built using Open Issuance by Bridge, a stablecoin platform owned by Stripe. This partnership is a natural evolution, as Klarna and Stripe already collaborate across 26 global markets.
Klarna’s entry puts it in direct competition with other major financial players who have recently launched their own stablecoins. This shortlist of mainstream payments firms includes PayPal, which debuted its stablecoin in 2023, and Stripe, which launched its own after the $1.1 billion acquisition of Bridge.
Strong Financial Position Supporting the Pivot
Klarna is venturing into crypto from a position of financial strength. The company recently completed its listing on the NYSE, raising $1.37 billion. In the third quarter, Klarna exceeded analyst forecasts by reporting 23% growth in gross merchandise volume and achieving $903 million in revenue.
Despite its stock trading near 52-week lows, the company maintains extremely strong liquidity, providing the necessary resources to develop and push new products like KlarnaUSD. Klarna is planning to announce new partnerships in the coming weeks. The company aims to secure its position as stablecoins increasingly become essential infrastructure for global payments.