Klarna Plans USD-Backed Stablecoin Launch in 2026

Klarna, the Swedish buy-now-pay-later fintech with over 114 million users worldwide, announced on November 25 its plans to launch KlarnaUSD, a U.S. dollar-backed stablecoin designed to enable faster and cheaper cross-border payments. The token, set to go live on the mainnet in 2026, will operate on Tempo, a payments-focused blockchain developed by Stripe and Paradigm, marking Klarna's entry into the growing digital asset sector.

The stablecoin will be fully backed by U.S. dollar reserves and redeemable at a one-to-one ratio, issued through Bridge, a Stripe company that manages compliance, reserves, and redemptions. This setup allows Klarna to integrate the token into its payment ecosystem without handling the operational complexities of stablecoin issuance. Initially, KlarnaUSD will support internal processes such as merchant payouts, refunds, cross-border settlements, and funding flows, which currently depend on slower traditional banking systems like correspondent networks and card settlements. Over time, the company intends to expand access to merchants and consumers across its 26 supported markets, aiming to reduce the global 120 billion in annual cross-border payment fees.