Digital bank Klarna is creating its own stablecoin, KlarnaUSD, based on the Tempo blockchain.
Date: 2025-11-26 Author: Oliver Abernathy Categories: BUSINESS
Digital bank Klarna announced the development of its first stablecoin, KlarnaUSD, which will operate on the Tempo blockchain, created by Stripe and Paradigm. This move marks a significant shift in the company's approach to cryptocurrencies: CEO Sebastian Siemiatkowski previously expressed skepticism about digital assets. With the launch of KlarnaUSD, the bank becomes the first financial institution to leverage the new network's capabilities to improve global payments.
McKinsey estimates that stablecoin transaction volume already exceeds $27 trillion annually and could surpass traditional payment systems by the end of the decade. In October 2025, stablecoin market capitalization exceeded $300 billion for the first time, and the cross-border payments market generates approximately $120 billion annually in fees alone. Klarna sees stablecoins as an opportunity to reduce costs for users and businesses by making settlements faster and cheaper.
Semiatkovsky emphasized that the company's scale and Tempo's infrastructure will ensure competitiveness compared to legacy networks: "With 114 million customers and $112 billion in annual GMV, we have the opportunity to transform global payments. The combination of Klarna's scale and Tempo's capabilities makes settlements faster and more accessible for everyone." He also noted that cryptocurrency has reached maturity: fast, cheap, and secure payments are now available at scale, opening up new opportunities for the bank.
The stablecoin is being built on the Open Issuance platform from Bridge, a subsidiary of Stripe. A public launch on the Tempo mainnet is expected in 2026. Currently, KlarnaUSD is only available on a testnet to allow for comprehensive testing and integration. The collaboration with Stripe strengthens the companies' existing strategic partnership, which spans payment solutions in 26 international markets.
Against these backdrops, other financial companies are also stepping up their efforts: Visa is expanding stablecoin support across several networks, and Western Union plans to issue its own stablecoin in the first half of 2026. Interest in this class of crypto assets has accelerated since US President Donald Trump signed the GENIUS Act, the country's first law regulating cryptocurrencies.
KlarnaUSD is opening a new chapter in digital payments, combining the potential of a large bank with innovative blockchain infrastructure, which could significantly impact the future of international financial transactions.
