Klarna Launches Dollar-Backed Stablecoin to Enter Crypto Payments Race

Klarna, the Swedish buy now, pay later fintech giant, announced Tuesday it is entering the stablecoin market with KlarnaUSD. The dollar-backed token will run on Tempo, a blockchain built by Stripe specifically for payments.

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…

— Klarna (@Klarna) November 25, 2025

The company serves over 100 million active consumers globally and operates across 26 markets. KlarnaUSD is currently available on Tempo’s testnet and is scheduled for mainnet launch in 2026.

Stablecoin transactions now exceed $27 trillion annually. New regulatory frameworks in the U.S. and Europe have opened pathways for large financial firms to build in the space.

CEO Sebastian Siemiatkowski previously dismissed cryptocurrency but has shifted position. “Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale,” he said.

Klarna Deploys Tempo Blockchain for Cross-Border Payments

Klarna aims to reduce cross-border payment costs, a market burdened by approximately $120 billion in annual fees. The company wants KlarnaUSD to function in everyday transactions beyond crypto platforms.

Tempo was developed jointly by Stripe and Paradigm as payment-focused infrastructure. Klarna built KlarnaUSD using Open Issuance by Bridge, a stablecoin platform owned by Stripe following its $1.1 billion acquisition.

With Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone

Siemiatkowski stated.

The partnership extends an existing relationship between Klarna and Stripe spanning 26 global markets. Geographic availability for KlarnaUSD has not been announced yet.

PayPal launched its stablecoin in 2023. Stripe rolled out its own token after the Bridge acquisition. Klarna now joins this group of mainstream payment firms integrating stablecoins into core operations.

Strong Q1 Results Amid Volatile Stock Performance

Klarna reported its fourth consecutive profitable quarter in Q1 2025. Adjusted operating profit reached $3 million, a $5 million improvement year-over-year.

Revenue climbed 15% on a like-for-like basis to $701 million. Gross merchandise volume increased 13% to $25 billion. The company hit 100 million active consumers in April 2025.

Merchant growth accelerated 27% as Klarna reached 724,000 merchants. The company welcomed 150,000 new retail partners in Q1, more than double the previous period.

Revenue take-rate rose to 2.77%, up from 2.71% a year earlier. Transaction margin dollars increased 6% to $271 million.

Meanwhile, Klarna’s stock has experienced significant volatility. Shares fell over 24% in recent trading sessions following earlier quarterly reports and amid broader market pressure since its IPO.

The company announced exclusive partnerships with major retailers including Walmart through OnePay and DoorDash. It also expanded its eBay partnership to the U.S. after European launches.

The momentum is undeniable, and this is just Q1, Our AI-first strategy is driving exceptional returns, we’re outpacing competitors, and our next-gen products are reshaping money management for millions

Siemiatkowski said.

Integration with Stripe has supercharged growth. Upcoming rollouts with JPMorgan Payments, Worldpay, and Nexi are expected to further expand Klarna’s merchant base.