Klarna’s Stablecoin Avoids SWIFT to Reduce International Transaction Expenses

Klarna Unveils KlarnaUSD Stablecoin on Tempo Blockchain

Swedish fintech leader Klarna, renowned for its buy-now, pay-later offerings, has made its debut in the stablecoin sector by introducing KlarnaUSD. This new digital token, pegged to the U.S. dollar, is built on the Tempo blockchain—a high-speed, cost-efficient layer-1 network developed by Stripe and Paradigm. Klarna is the first digital bank to issue a stablecoin on Tempo, with the token currently live on the testnet and a full mainnet launch anticipated in 2026. The project utilizes Bridge, Stripe’s stablecoin infrastructure platform, further strengthening Klarna’s collaboration with Stripe across 26 countries.

Initially, KlarnaUSD will be used internally to streamline and reduce expenses associated with cross-border payments within the company. By bypassing traditional systems like SWIFT, Klarna aims to make large international transfers more efficient. Although there are no immediate plans to offer KlarnaUSD to retail customers, CEO Sebastian Siemiatkowski highlighted that this move marks the start of Klarna’s broader ambitions in the crypto space. He pointed to advancements in blockchain technology—now faster, more affordable, secure, and scalable—as key reasons for this strategic shift. This change in direction reflects the increasing acceptance of digital assets and the emergence of clearer regulatory guidelines, such as the U.S. GENIUS Act, which has fueled a surge in stablecoin initiatives.

Stablecoin Market Growth and Industry Impact

The stablecoin sector has expanded rapidly, now boasting a market capitalization of around $304 billion. Leading tokens like Tether’s USDT ($184 billion) and Circle’s USDC ($74.3 billion) dominate the field. KlarnaUSD enters a market experiencing heightened institutional interest, with projects such as MetaMask’s mUSD, Western Union’s Solana-based stablecoin, and Visa’s growing support for stablecoin settlements. The inefficiencies of traditional cross-border payments, which cost businesses an estimated $120 billion each year, present a major opportunity for blockchain-powered solutions. Experts estimate that stablecoins could lower these transaction fees by as much as 90% compared to conventional payment networks.

Klarna’s Strategic Evolution and Regulatory Momentum

Klarna’s foray into stablecoins is part of its broader transformation from a buy-now, pay-later specialist to a comprehensive digital banking platform. After its listing on the New York Stock Exchange in September 2025, the company has faced mounting pressure to boost profitability, especially following a 30% drop in its share price since the IPO. By adopting blockchain technology, Klarna seeks to diversify its income sources and challenge established payment systems. With a customer base of 114 million and an annual gross merchandise volume of $112 billion, Klarna is well-positioned to pilot and scale innovative financial technologies.

Regulatory advancements are also accelerating stablecoin adoption. The U.S. GENIUS Act, passed in July, has established clear oversight for stablecoins, while the European Union’s MiCA framework is nearing implementation. These regulatory developments are providing greater certainty for companies like Klarna to experiment with digital assets. Meanwhile, major financial institutions such as JPMorgan and Citi are exploring tokenized deposit solutions, and governments in places like Kyrgyzstan and Wyoming have initiated stablecoin pilot programs.

The Future of Cross-Border Payments

As KlarnaUSD prepares for its mainnet debut in 2026, its progress could herald a new era in cross-border payments for fintech firms. While not intended to replace existing payment methods, KlarnaUSD’s ability to lower costs and enhance efficiency could reshape the global financial landscape. With industry giants like Western Union and Visa also entering the stablecoin arena, competition is heating up, highlighting the transformative impact of blockchain technology on the future of finance.