Klarna Debuts First Stablecoin on Tempo Blockchain

Klarna has launched KlarnaUSD, its first stablecoin and the first bank-issued token to debut on Tempo, a new payments-focused blockchain built by Stripe and Paradigm.

The move, announced Tuesday (Nov. 25), positions the Sweden-based digital bank and payments provider to test blockchain-based settlement at a moment when stablecoin activity is rapidly scaling. McKinsey estimated the asset class now supports $27 trillion in annual transaction volume and could overtake traditional payment networks before the decade ends. Klarna said it views stablecoins as a potential lever to reduce cross-border payment costs, a segment that generates an estimated $120 billion in fees globally each year.

KlarnaUSD is being issued through Open Issuance by Bridge, a stablecoin infrastructure platform owned by Stripe. The token is set to go live on Tempo’s mainnet in 2026 and is currently active only on the network’s testnet, where it is not publicly available. Klarna said the controlled environment provides space for early technical integration, prototyping and risk evaluation ahead of a full launch.

Announcing the stablecoin, Klarna highlighted the potential for its scale — 114 million customers and $112 billion in annual gross merchandise volume — to accelerate adoption of lower-cost blockchain payment rails.

The initiative marks a shift for Klarna CEO Sebastian Siemiatkowski, who has historically been skeptical of crypto.

“With Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone,” Siemiatkowski said in a statement. He added that crypto infrastructure has reached a point of speed, security and cost efficiency suitable for high-volume payment use cases.

The initiative also expands Klarna’s existing relationship with Stripe, which already supports the company’s payments infrastructure across 26 markets. Klarna said the KlarnaUSD announcement is the first in a broader set of forthcoming crypto-related initiatives and plans to reveal an additional partner in the coming weeks.

Notably, Stripe’s stablecoin arm Bridge has come under fire recently. Four organizations (Independent Community Bankers of America [ICBA], the Bank Policy Institute [BPI], the National Community Reinvestment Coalition (NCRC) and Fair Finance Watch [FFW]) recently  submitted comments to the Office of the Comptroller of the Currency against Bridge’s application for a national trust bank charter.

Overall, the stablecoin space is evolving quickly. Stablecoin payment platform Pay3 recently debuted its Agentic Payments Platform, using artificial intelligence (AI) agents to enact transactions. HSBC is reportedly expanding its tokenized deposits services. Visa, too, is embracing Stablecoins.

“We do think it’s going to be real. The technology is too efficient. It’s just right for this type of deployment,” Mark Nelsen, head of product for Visa Commercial Money Solutions, recently told PYMNTS CEO Karen Webster.