rewrite this title Klarna Debuts KlarnaUSD Stablecoin – Finovate

Klarna revealed plans to launch KlarnaUSD, a new stablecoin built on Stripe and Paradigm’s Tempo blockchain.

Set to debut on the Tempo mainnet in 2026, KlarnaUSD will leverage early access to Tempo for testing and integration.

The move positions Klarna to capture value in the $120 billion cross-border payments market, using stablecoins to cut costs for both consumers and merchants as stablecoin usage surpasses $27 trillion annually.

Two months after reaching one million card sign-ups in the US, BNPL leader Klarna has revealed plans to launch its own stablecoin, KlarnaUSD.

Klarna is launching its new stablecoin on the Tempo blockchain. Launched in September 2025, Tempo is an independent, layer-1 blockchain created by Stripe and Paradigm that’s built for payments. KlarnaUSD is built on Open Issuance by stablecoin infrastructure platform Bridge.

“With 114 million customers and $118 billion in annual 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 Klarna Co-founder and CEO Sebastian Siemiatkowski. “Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale. This is the beginning of Klarna in crypto, and I’m excited to work with Stripe and Tempo to continue to shape the future of payments.”

Klarna will launch its stablecoin on the Tempo mainnet in 2026. Tempo has granted Klarna early access to its infrastructure in advance of the KlarnaUSD launch to allow the fintech to conduct advanced testing, prototyping, and integration.

Klarna and Stripe first teamed up in 2021 when they partnered to allow Stripe users in 20 countries to offer Klarna’s BNPL option, with Stripe as the preferred payments partner in the US and Canada. The partnership between Klarna and Stripe’s blockchain, Tempo, deepens the relationship between the two players.

Today’s announcement comes as cross-border payments are estimated to generate $120 billion in transaction fees annually, and as stablecoin transactions top $27 trillion a year. Launching its own stablecoin isn’t just a way for Klarna to jump on a recent trend. The company will leverage the benefits of stablecoins to reduce costs for both consumers and merchants.

Photo by appshunter.io on Unsplash

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