Klarna Launches Stablecoin to Reduce Payment Costs

Swedish payments giant Klarna has made a big move into digital payments by introducing KlarnaUSD, a USD-backed stablecoin. According to a press release, this new currency is designed to make cross-border payments quicker and cheaper. Likewise, KlarnaUSD aims to provide a clearer option for both businesses and buyers.

KlarnaUSD to Improve User Experience

Currently, KlarnaUSD is operational on Stripe’s ambitious blockchain venture, Tempo’s testnet, where it is being tested for functionality, security, and compatibility. 

Klarna plans to launch the stablecoin on the mainnet in 2026, which will mark its official entry into on-chain payments. Interestingly, this launch aligns with the increasing use of blockchain technology in payment systems.

KlarnaUSD is built on a system called Open Issuance, which is a product from Bridge, a part of Stripe. Open Issuance offers tools for creating, managing, and exchanging stablecoins that are backed by real money. This system is also designed to ensure transparency and comply with regulations.

With this, Klarna can focus on improving user experience and integrating payments globally while depending on a secure method for issuing stablecoins. The launch of KlarnaUSD also shows that Klarna is embracing Web3 technologies for the future of global commerce. 

Klarna Bank CEO Turns to Crypto

In February, Klarna Bank’s CEO Sebastian Siemiatkowski revealed plans to embrace cryptocurrency, signaling an exciting new direction for the company. Sebastian shared his enthusiasm for exploring crypto’s potential but also called on his followers for suggestions.

The CEO’s post revealed his interest in utilizing cryptocurrency, though he admitted that Klarna was late to the game compared to major players like PayPal and Revolut. Despite the competition, Klarna, which processes over $100 billion annually in trading volume, is eager to capitalize on the momentum of the digital assets market.

Siemiatkowski is keen to explore how cryptocurrencies can work in tandem with Klarna’s existing “buy-now-pay-later” (BNPL) services. Meanwhile, Robbie Ferguson, co-founder of Immutable, suggested that Klarna could tap into the $150 billion gaming market by offering an easy BNPL solution for in-game purchases.

Growing Global Interest Toward Stablecoins

More people worldwide are becoming interested in stablecoins. In June, Societe Generale, one of Europe’s largest and most established financial institutions, announced the launch of USD CoinVertible (USDCV). This new stablecoin is available on both the Solana and Ethereum networks.

Meanwhile, some prominent U.S. banks are exploring new stablecoin plans. Also, Stripe is in talks with global banks about integrating stablecoins into its service. This move shows that banks and companies do not want to fall behind, as the stablecoin market is growing fast. Ultimately, the market is led by two large stablecoins, which are Tether’s USDT and Circle’s USDC.