Swedish payments giant Klarna has made a significant entry into digital payments with the introduction of KlarnaUSD, a USD-backed stablecoin. This new currency is designed to expedite and reduce the cost of cross-border payments, offering a clearer option for both businesses and buyers.
KlarnaUSD to Improve User Experience
Currently, KlarnaUSD is undergoing testing on Stripe’s blockchain venture, Tempo’s testnet, where its functionality, security, and compatibility are being evaluated.
Klarna plans to officially launch the stablecoin on the mainnet in 2026, marking its formal entry into on-chain payments. This launch coincides with the increasing adoption of blockchain technology in payment systems.
KlarnaUSD is built on Open Issuance, a product from Bridge, a division of Stripe. Open Issuance provides tools for the creation, management, and exchange of real-money-backed stablecoins, emphasizing transparency and regulatory compliance.
This development allows Klarna to concentrate on enhancing user experience and global payment integration, relying on a secure method for stablecoin issuance. The introduction of KlarnaUSD signifies Klarna’s commitment to embracing Web3 technologies for the future of global commerce.
Klarna Bank CEO Explores Cryptocurrency Integration
In February, Klarna Bank’s CEO Sebastian Siemiatkowski announced plans to embrace cryptocurrency, indicating a new strategic direction for the company. Siemiatkowski expressed his enthusiasm for exploring crypto's potential and sought input from his followers.
The CEO's announcement revealed his interest in utilizing cryptocurrency, acknowledging that Klarna entered the space later than established players like PayPal and Revolut. Despite the competition, Klarna, which handles over $100 billion in annual trading volume, is keen to leverage the momentum of the digital assets market.
Siemiatkowski is exploring how cryptocurrencies can complement Klarna’s existing “buy-now-pay-later” (BNPL) services. Robbie Ferguson, co-founder of Immutable, suggested that Klarna could enter the $150 billion gaming market by providing a seamless BNPL solution for in-game purchases.
Growing Global Interest in Stablecoins
Global interest in stablecoins continues to rise. In June, Societe Generale, a major European financial institution, announced the launch of its USD stablecoin, USD CoinVertible (USDCV), available on both the Solana and Ethereum networks.
Additionally, prominent U.S. banks are reportedly exploring joint stablecoin projects. Stripe is also in discussions with global banks regarding stablecoin integration into its services, indicating a widespread effort to remain competitive in the rapidly expanding stablecoin market. The market is currently dominated by Tether's USDT and Circle's USDC.