Klarna Launches Stablecoin to Cut Cross-Border Fees

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Klarna Launches Stablecoin to Slash $120 Billion in Cross-Border Fees

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 26, 2025

Key Takeaways

Klarna launches KlarnaUSD, a USD-pegged stablecoin on Tempo’s testnet, set to go live on its public network in 2026;
The token, built using Stripe’s Open Issuance via Bridge, aims to cut the $120 billion in global cross-border payment fees;
With 114 million users and $112 billion in volume, Klarna is testing blockchain tech for faster, cheaper internal transactions before rollout.

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Klarna Launches Stablecoin to Slash $120 Billion in Cross-Border Fees

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Klarna, a Swedish payments company, has introduced a new stablecoin, KlarnaUSD, which is pegged to the US dollar.

This token is currently active on the Tempo blockchain's test network. Its full migration to Tempo's public network is scheduled for 2026.

KlarnaUSD is the first bank-issued token to use the payment-focused blockchain developed in collaboration with Stripe and Paradigm.

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The creation of KlarnaUSD uses the Open Issuance system designed by Bridge, a Stripe-owned platform for token issuance and management. This step further builds on Klarna's relationship with Stripe, already present in over two dozen global markets for payment processing.

KlarnaUSD aims to reduce the costs of sending money across borders. Currently, cross-border transactions amount to roughly $120 billion in annual fees, and Klarna expects this digital token to help reduce those costs and the time required to settle payments.

With over 114 million users and an annual gross merchandise volume of $112 billion, Klarna is leveraging its large network to trial blockchain-powered payment solutions.

For now, KlarnaUSD is used only for internal transactions, and there are no announced plans to connect it to Klarna's core installment products.

Testing KlarnaUSD on the Tempo testnet allows the firm to develop and integrate the system before its expected launch on the main network in 2026.

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