Global digital bank Klarna on Tuesday introduced its own US dollar-linked stablecoin, becoming the latest major fintech to shift its international payment system onto blockchain rails.
What Happened
The company said that the new token, KlarnaUSD, is being issued on a blockchain developed by Stripe and will serve as the backbone for its cross-border money movement, according to Financial Times.
The Swedish buy-now-pay-later group said the tokenized payment structure is designed to lower costs for merchants and shoppers, as well as streamline Klarna’s internal treasury operations.
Quoting sources, the report stated that using a stablecoin will allow the company to avoid high-cost intermediaries, including traditional networks such as Swift, when moving large transaction volumes across markets.
Although KlarnaUSD will initially sit behind the scenes powering the company’s settlement flows, the same person said the stablecoin is expected to be made available for broader merchant and consumer payments later on.
Why it matters
Stablecoins, private digital dollars backed by cash or short-term securities, have grown rapidly this year.
Citigroup data shows supply reached about $280 billion in September, up from $200 billion at the beginning of 2025, underscoring rising demand for tokenized cash in payments.
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Klarna joins a growing list of global payment firms moving into stablecoins.
PayPal has already launched PYUSD, Stripe has begun offering stablecoin settlement for merchants, and UK-listed Wise as well as Revolut are working on their own digital-token payment products, the report further stated.
Large U.S. banks have also been exploring issuing their own stablecoins after President Donald Trump’s Genius Act created a regulatory framework for digital dollar instruments earlier this year.
For Klarna, the move marks a notable strategic shift.
Chief executive** Sebastian Siemiatkowski** had been publicly skeptical of crypto but reversed course this year, saying Klarna would be “the last major fintech in the world to embrace” the sector.
The company has been broadening its offerings beyond its core short-term consumer loans toward operating as a digital bank.
Klarna’s shares, listed in New York, have fallen more than 30 percent since September.
The stablecoin launch comes amid intensifying competition between neobanks and crypto-native payment companies, both racing to expand into banking, treasury, and settlement services.
Klarna said it plans to unveil additional crypto-focused partnerships in the coming weeks.
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