Klarna Unveils Dollar-Pegged Crypto to Cut $120B Fees

- Klarna introduces KlarnaUSD, a stablecoin designed to slash cross-border payment costs. - The token runs on the Tempo blockchain, a collaboration between Stripe and Paradigm, and is now live on a testnet. On November 25, 2025, CoinDesk and other media outlets reported that Swedish buy now, pay later giant Klarna unveiled KlarnaUSD, its U.S. dollar-backed stablecoin. This move marks Klarna's entry into the cryptocurrency sector, as the company aims to use blockchain technology to address the inefficiencies and high costs of cross-border payments, which are estimated at $120 billion globally each year. The stablecoin operates on the Tempo blockchain, which Stripe and venture capital firm Paradigm developed together. As the first stablecoin to launch on this platform, KlarnaUSD marks a milestone for financial institutions adopting blockchain innovations. The coin's issuance is underpinned by Open Issuance, a product by Stripe subsidiary Bridge. Currently, KlarnaUSD is in its testnet phase, and Klarna plans a full mainnet rollout for 2026. Klarna CEO Sebastian Siemiatkowski, who was previously skeptical of cryptocurrencies, highlighted the move as a strategic pivot, explaining it is part of the company’s broader vision to integrate cutting-edge technology into financial services. This initiative aligns with growing institutional interest in digital assets, as demonstrated by similar initiatives from Visa and JPMorgan earlier this year. The launch occurs amid increasing efforts worldwide to establish clear stablecoin regulations. In the European Union, the Markets in Crypto-Assets (MiCA) regulation is entering its implementation stage, while the United States is advancing legislative measures under the GENIUS Act framework. Klarna’s entry into the crypto space underscores the evolving role of blockchain in modern finance, and KlarnaUSD is poised to shape the future of cross-border transactions. With this launch, the company joins a list of major players revolutionizing global payments with innovative stablecoin solutions.