Klarna announced plans to launch KlarnaUSD, a USD-backed stablecoin, on Tempo, a payments-focused blockchain developed by Stripe and Paradigm. The Swedish buy-now-pay-later provider said the token is in pilot and slated for mainnet launch in 2026, aiming to reduce the cost and speed up cross-border transfers for its global customer base.
KlarnaUSD to run on Stripe–Paradigm’s Tempo
Klarna said it will issue KlarnaUSD on Tempo, describing the network as an independent blockchain purpose-built for payments by Stripe and crypto investment firm Paradigm. The company characterized the move as making Klarna the first bank and first regulated payments provider to launch a stablecoin on Tempo.
The stablecoin is designed to maintain a one-to-one peg with the U.S. dollar and is being issued using Stripe’s infrastructure, including its Bridge “Open Issuance” tooling, according to the company. Klarna said the initiative is intended to lower fees and settlement times in international remittances and merchant payouts.
Payments scale and rollout timeline
Klarna reports 114 million customers and approximately $112 billion in annual transaction volume, with its largest user base in the United States. The company said KlarnaUSD is currently in pilot testing and is expected to go live on Tempo’s mainnet in 2026.
Why it matters
Klarna’s stablecoin push comes as stablecoin transaction volumes have grown rapidly. The company cited estimates that annual stablecoin transactions exceed $27 trillion, and noted that cross-border payments generate an estimated $120 billion in fees each year—costs that blockchain-based settlement could help reduce.
About Tempo
Tempo is a new blockchain developed by Stripe and Paradigm specifically for payment use cases, emphasizing faster, lower-cost transactions. Klarna’s launch positions the BNPL and digital banking provider among the first major regulated payments firms to test stablecoin-based settlement on the network.