Klarna has launched KlarnaUSD, a USD-pegged stablecoin built on Tempo, the new layer-1 blockchain developed by Stripe and Paradigm. The Swedish digital bank’s move represents a significant step into blockchain technology as it prepares to transform its global payment systems.
KlarnaUSD targets cheaper cross-border payments before a wider consumer rollout. Meanwhile, the stablecoin market continues surging past $300 billion as major fintech companies adopt blockchain infrastructure.
Introducing KlarnaUSD, our first @Stablecoin.
We’re the first bank to launch on @tempo, the payments blockchain by @stripe and @paradigm.
With stablecoin transactions already at $27T a year, we’re bringing faster, cheaper cross-border payments to our 114M customers.
Crypto is…
— Klarna (@Klarna) November 25, 2025
First Bank to Launch on Tempo Blockchain
KlarnaUSD is currently live on Tempo’s testnet, with full mainnet deployment planned for 2026. The stablecoin uses Bridge, Stripe’s dedicated stablecoin infrastructure, giving Klarna direct access to advanced payment-focused blockchain technology.
Notably, Klarna becomes the first financial institution to issue a token on Tempo. This blockchain was specifically designed for fast, low-cost payments, making it an ideal platform for Klarna’s goals.
Initially, the token will support internal payment flows to reduce cross-border transfer costs. After mainnet launch, Klarna plans to extend KlarnaUSD to merchants and consumers following internal testing. However, the company currently has no plans to integrate the stablecoin into its buy-now-pay-later services.
CEO Embraces Blockchain After Initial Skepticism
Klarna’s CEO Sebastian Siemiatkowski, once skeptical of cryptocurrency, now embraces blockchain’s payment potential. He describes crypto as having reached a stage where it’s “fast, low-cost, secure, and built for scale.”
With over 114 million customers and $112 billion in annual gross merchandise volume, Klarna believes it has sufficient scale to transform global payments. The partnership with Stripe has been central to this strategy, as Stripe already processes much of Klarna’s transaction volume.
Cross-border payments currently cost consumers and businesses around $120 billion annually. Industry estimates suggest blockchain-based infrastructure can reduce international payment costs by up to 90% compared to traditional networks.
Stablecoin Market Reaches Record Heights
KlarnaUSD’s launch coincides with surging stablecoin adoption. Annual transaction volume has already surpassed $27 trillion, according to McKinsey data. The global stablecoin market capitalization climbed from $260 billion in July to approximately $304 billion by November.
Much of this growth followed passage of the US GENIUS Act, the first federal law governing stablecoins. Treasury Secretary Scott Bessent expects stablecoins to reach a $3 trillion market cap by 2030, potentially saving the US government $114 billion annually.
Other major companies are also entering the stablecoin space. MetaMask launched mUSD earlier this year, while Western
