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Klarna is making a bold push into digital money, unveiling plans for a US dollar-backed stablecoin just months after its high-profile stock market debut.
The move marks a striking pivot for the Swedish buy now, pay later provider, long sceptical of crypto, as competition intensifies between fintechs, digital banks and crypto firms seeking to dominate the future rails of cross-border commerce.
KlarnaUSD
Klarna’s stablecoin gamble
The token — KlarnaUSD — will run on Tempo, a blockchain developed by Stripe alongside Paradigm, and is already in testing ahead of a planned mainnet launch in 2026.
Klarna intends to deploy the stablecoin first within its own international payment flows before expanding usage to merchants and, ultimately, consumers.
According to one person close to the company, the goal is to strip out costly intermediaries, such as the Swift network, when shifting funds across borders, improving both speed and economics.
Stablecoin Growth
Stablecoins have grown from niche infrastructure to essential plumbing in digital finance, with around $280bn in circulation as of September, up sharply from the start of the year.
Pegged largely to the US dollar and backed by cash or short-term securities, they offer a low-volatility counterpart to the wider crypto market.
Their appeal is broadening beyond traders to mainstream payments players that see private digital money as a route to cheaper, programmable settlement.
Klarna joins a swelling cohort of incumbents making the same calculation.
PayPal and Stripe have already launched their own stablecoins, while Wise and Revolut are developing similar propositions.
In the US, several large banks are exploring tokenised dollars following President Donald Trump’s Genius Act, which provides a clearer legal footing for issuance.
Europe, meanwhile, is preparing to implement the far-reaching MiCA regime, giving firms a defined regulatory perimeter for digital assets.
Dismissive of Crypto
For Sebastian Siemiatkowski, Klarna’s outspoken chief executive, the move represents a turnabout.
Once openly dismissive of crypto, he now argues the technology has reached the level of maturity needed for safe, low-cost, high-scale payments.
The company, which is pushing to diversify beyond interest-free instalment loans and reposition itself as a digital bank, is betting that owning its own token can create structural cost advantages and open new commercial pathways.
The timing is also strategic.
Klarna’s shares have slid more than 30 per cent since their New York listing, and management is under pressure to demonstrate fresh growth avenues.
Stablecoin-based settlement could offer margin uplift on international flows in Klarna’s largest market, the US, while giving merchants a compelling alternative to traditional acquiring and FX-heavy corridors.
Yet the broader backdrop is one of intensifying rivalry.
Crypto start-ups are racing to secure US banking charters, while neobanks are leaning harder into digital asset services. Klarna’s stablecoin, due to be fully backed by US dollars, is only the opening act; the company has promised further partnerships in the weeks ahead.
The contest to define the next generation of payment infrastructure is accelerating — and Klarna has signalled it wants to be in the vanguard.
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