Klarna (KLAR) Stock: Swedish Fintech Enters Crypto Market With Dollar-Pegged Stablecoin

TLDR

• Klarna launched KlarnaUSD, a stablecoin pegged to the US dollar, becoming the first digital bank to issue a token on Stripe and Paradigm’s Tempo blockchain.
• The stablecoin is currently live on Tempo’s testnet with a mainnet launch planned for 2026, built by Bridge, a Stripe-owned stablecoin infrastructure provider.
• Klarna will initially use the stablecoin for internal purposes to reduce international payment costs within its own system before expanding to merchant and consumer transactions.
• CEO Sebastian Siemiatkowski reversed his previous stance against crypto, stating that crypto is now “fast, low-cost, secure, and built for scale.”
• Klarna’s stock has dropped over 30 percent since its September NYSE listing, with the stablecoin launch seen as part of the company’s strategy to diversify beyond buy-now, pay-later services.

Klarna announced Tuesday it will launch its own stablecoin. The Swedish fintech company known for buy-now, pay-later services is entering the crypto payments space with KlarnaUSD.

The move marks a major shift for a company that stayed away from digital currencies until now. Klarna becomes the first digital bank to issue a token on Tempo, the new layer-1 blockchain built by Stripe and Paradigm.

KlarnaUSD is currently live on Tempo’s testnet. The mainnet launch is scheduled for 2026. Bridge, a stablecoin infrastructure provider owned by Stripe, built the new token.

The stablecoin is pegged to the US dollar and backed by short-term securities or cash-like assets. This structure keeps it stable, unlike volatile cryptocurrencies like Bitcoin.

Klarna plans to use the stablecoin internally at first. The company wants to reduce costs for international payments within its own operations. A Klarna spokesperson confirmed there are no current plans to integrate stablecoins into the company’s installment-payment services.

The initial focus stays on internal uses before expanding to merchant payments and consumer transactions. Klarna will test and refine the system internally first.

CEO Changes Course on Crypto

This launch represents a complete reversal for CEO Sebastian Siemiatkowski. Earlier this year, he said Klarna would probably be the last major fintech to enter the crypto space. He previously opposed crypto investments.

The change in stance comes as digital currencies gain legitimacy and regulations become clearer. The GENIUS Act passed in the United States in July established clear rules for stablecoins, fueling a wave of new token launches.

The move fits with Klarna’s broader strategy to become a full digital bank. The company wants to expand beyond its core buy-now, pay-later business model.

Market Pressure Mounts

Klarna’s stock has dropped more than 30 percent since listing on the New York Stock Exchange in September. Investors have questioned how the loss-making fintech plans to reach profitability.

Klarna Group plc, KLAR

The stablecoin launch could help diversify revenue streams. It shows Klarna is still innovating as competition heats up in the fintech space.

Traditional payment companies are also jumping into stablecoins. Visa expanded its stablecoin settlement network in July by adding support for the Global Dollar token. Western Union announced in October it would use Solana to power a new stablecoin settlement system launching in the first half of 2026.

Growing Stablecoin Market

The broader stablecoin market now stands at about $304 billion. Tether’s USDT leads at $184 billion, followed by Circle’s USDC at $74.3 billion, according to DefiLlama data.

MetaMask launched its own stablecoin, mUSD, in September. The token now has a market capitalization of $844 million.

Klarna is expanding its long-standing payments partnership with Stripe across its 26 global markets. The stablecoin project builds on that existing relationship.

The company expects the token will help skip traditional international payment systems like SWIFT. This could cut costs for shoppers and merchants dealing with international payments.

KlarnaUSD will launch on mainnet in 2026 as planned. The company will continue testing the stablecoin on Tempo’s testnet until then.

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