Klarna has announced the release of its first stablecoin, KlarnaUSD, on Stripe platform Tempo after previous concerns from CEO Sebastian Siemiatkowski
KlarnaUSD has hit virtual wallets this week as the buy-now-pay-later giant releases its first stablecoin.
The bank has stated it is the first to launch the stablecoin on Tempo, an independent blockchain owned by Stripe and Paradigm.
Stablecoins will be used by Klarna as a way to decrease costs for both merchants and consumers.
Klarna’s crypto move: A 180 from the CEO
In a statement, the company reaffirmed that CEO Sebastian Siemiatowski was previously a ‘vocal crypto skeptic’.
Stablecoins have made multiple headlines in recent months as a result of the introduction of regulatory frameworks such as the GENUIS Act, paving the way for businesses looking to capitalise on the opportunity.
Sebastian Siemiatkowski, Co-founder and CEO of Klarna, says: “With 114 million customers and US$118bn 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.”
The news comes after McKinsey estimates that stablecoin transactions peak at US$27tn per year.
Klarna says it will continue to announce crypto partners in the near future as part of its journey in sharing public crypto initiatives.
Long-term partners: Stripe and Klarna
KlarnaUSD is currently built on Open Issuance by Stripe company Bridge.
The launch of KlarnaUSD on Tempo’s mainnet is expected to happen in 2026. At this time, KlarnaUSD is not publicly traded and is limited to Tempo’s testnet.
Klarna receives early access to use infrastructure that facilitates advanced testing, integration and prototyping.
The partnership between the fintech giants stretches back to the wake of the pandemic, announcing an agreement enabling quick and easy payments in 2021.
The pair recently strengthened its partnership, allowing merchants to access buy-now-pay-later (BNPL) services across 25 countries.
Merchants can now access Klarna’s payment options through Stripe’s infrastructure.
Stripe and Klarna currently work together to support payment infrastructure across Klarna’s 26 global markets.
The announcement of Klarna’s stablecoin relying on Open Issuance is a further testament to the partnership, now deeply intertwined.
Predictions from Klarna suggest that stablecoins could overtake legacy payment before the end of the decade.
Stablecoin: More than the latest trend in finance
In the last six months, headlines have ranged from reshaping the future of global finance to the landscape adopting a stablecoin summer.
Stablecoins rely on blockchain technology, and its rising popularity has seen a further move towards decentralised finance.
Stablecoins provide a faster and cheaper alternative to traditional payment rails, leading to businesses offering instant settlement using UDSC.
The adoptable currency has also led to new partnerships as well as existing ones, including pairings between Equals Money + Railsr and BVNK.
As a result, moving money has been made more efficient, accessible and effortless for merchants globally.
