Klarna, the European Union-regulated digital bank, has taken a significant step into the world of cryptocurrency. It has launched a stablecoin called KlarnaUSD, making it the first financial entity to issue a token on Tempo, the fresh layer-1 blockchain designed by Stripe and Paradigm.
As detailed in an announcement on Tuesday, this stablecoin is pegged to the US dollar and is currently accessible on Tempo’s testnet, with the official launch scheduled for 2026.
KlarnaUSD is developed by Bridge, a stablecoin infrastructure partner under the ownership of Stripe. This initiative deepens Klarna’s existing payments partnership with Stripe, leveraging their operations in 26 countries.
“Crypto has reached a point where it is efficient, economical, secure, and designed for growth. This marks the beginning of Klarna’s journey in the cryptocurrency space,” stated Klarna CEO Sebastian Siemiatkowski.
Klarna is a Swedish financial technology firm noted for enhancing online transactions and offering payment solutions, including popular buy-now-pay-later (BNPL) services. A spokesperson mentioned that the company is only beginning to delve into stablecoin technology, with initial aims at internal applications, such as minimizing the costs associated with international transactions within Klarna. However, there are currently no intentions to incorporate stablecoins into Klarna’s installment payment plans.
The Rise of Stablecoins
The GENIUS Act, enacted in the United States in July, has implemented clear regulations for stablecoins, catalyzing a surge in new stablecoin launches.
In August, the self-custodial crypto wallet MetaMask introduced a stablecoin powered by liquid platform M0, with its launch occurring in September, achieving a market cap of $844 million. Additionally, Western Union is utilizing Solana to develop a stablecoin settlement infrastructure for its US Dollar Payment Token (USDPT) and a Digital Asset Network in collaboration with Anchorage Digital Bank, projected to launch in the first half of 2026.
In the face of stiff competition from new stablecoin ventures, traditional payment service providers are also making strides. In July, Visa expanded its stablecoin settlement network to include support for the Global Dollar (USDG) token, facilitating transactions across Stellar and Avalanche.
The overall stablecoin landscape has reached around $304 billion, primarily led by Tether (USDT) with approximately $184 billion and Circle (USDC) with about $74.3 billion, according to data from DefiLlama.
Stablecoin market capitalization. Source: DefiLlama.
