Klarna is set to launch a dollar-backed stablecoin on the new blockchain developed by Stripe and Paradigm.
Originally starting as a Buy Now, Pay Later (BNPL) platform, the Swedish company has evolved into a global digital bank and payments provider. Klarna is now joining the conversation about how stablecoins could revolutionize the cross-border payments market, which currently incurs $120 billion in annual transaction fees.
The new stablecoin, KlarnaUSD, will be built on Open Issuance by Bridge, an infrastructure platform owned by Stripe. Open Issuance allows companies to easily mint and burn coins, manage their reserves, and select preferred partners.
KlarnaUSD is scheduled to launch on the Tempo blockchain mainnet in 2026. Tempo is an independent venture incubated by Stripe, aimed at establishing a payments-focused Layer 1 blockchain.
“With 114 million customers and $112 billion in annual Gross Merchandise Volume (GMV), Klarna has the scale to change payments globally. With Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone,” said Sebastian Siemiatkowski, CEO of Klarna.