Klarna, a global payments provider, has introduced its own stablecoin, KlarnaUSD, aiming to significantly reduce the costs associated with cross-border transactions for its extensive customer base. A stablecoin is a digital token designed to maintain a steady value, typically pegged to a fiat currency like the US dollar. Klarna believes this strategic move will help lower the high fees commonly associated with international payments.
The newly launched stablecoin is built on the blockchain technology developed by Stripe, a prominent payments firm renowned for processing billions of dollars in online transactions. Klarna anticipates that this new token will not only reduce expenses for both consumers and merchants but also simplify the overall payment process.
How KlarnaUSD Works
KlarnaUSD is designed to address a prevalent issue faced by individuals and businesses engaging in online payments across different currencies. Traditional international payment methods often involve various fees, including bank charges, card processing fees, and lengthy settlement times. In contrast, a blockchain-based system facilitates much faster payment settlements by utilizing shared digital records, eliminating the need for banks to act as intermediaries. When a transaction involving KlarnaUSD occurs, it is verified on Stripe's private blockchain, which is optimized for speed and cost-efficiency.
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…
To illustrate the practical benefits, consider a small German clothing brand that sells to customers in the United States. Such a business might incur significant losses, often several percentage points of each sale, due to currency conversion rates and card processing fees. By adopting KlarnaUSD, the brand can receive payments more rapidly and with substantially lower costs, thereby retaining more revenue and improving its cash flow. For the end consumer, the purchasing experience remains familiar, while the underlying cost savings are substantial.
A Trend Toward Cheaper Digital Money
Klarna's initiative aligns with a broader industry trend towards more accessible and cost-effective digital financial solutions. The global adoption and usage of stablecoins have seen a remarkable surge in recent years. According to research firm Kaiko, stablecoins now account for over 70% of all cryptocurrency trading volume. This growth has prompted numerous companies to explore the potential of stablecoins to reduce settlement costs, accelerate payment processing, and support the expansion of digital commerce without introducing additional complexity for users. Klarna's entry into this space is driven by a clear objective: to make payments more affordable.
🚨 BREAKING: Klarna launches KlarnaUSD stablecoin with Bridge on Tempo* the new Payments focussed Blockchain.
Klarna’s CEO called Bitcoin a “decentralized Ponzi scheme.”
Feb 2025, tweeted: “Ok. I give up.”
Now, among the first companies on Tempo.
What changed? 🧵
This development also occurs at a time when regulatory bodies are increasing their scrutiny of digital currencies. Stablecoins that are backed by tangible assets, such as the US dollar, are gaining favor as they provide a crucial link between traditional financial systems and the evolving landscape of blockchain technology. KlarnaUSD embodies this trend by offering a user-friendly entry point into the cryptocurrency space without requiring users to navigate complex new tools or interfaces.

