Klarna Admits Stablecoins Is Cheaper Than Banking: Will Crypto Recover?

[Ben Graham]

Klarna just made a move toward crypto that nobody really saw coming. The Swedish buy-now, pay-later giant announced on Tuesday that it is launching its own stablecoin, called KlarnaUSD, marking a significant shift from its traditional lending business and positioning it squarely in the crypto payments arena.

The token runs on a blockchain developed by Stripe, and Klarna is pitching it as a way to change how money moves across borders completely. The company says this setup can seriously cut costs for both shoppers and merchants who deal with international payments all the time.

Introducing KlarnaUSD, our first @Stablecoin.

We’re the first bank to launch on @tempo, the payments blockchain by @stripe and @paradigm.

With stablecoin transactions already at $27T a year, we’re bringing faster, cheaper cross-border payments to our 114M customers.

Crypto is…

— Klarna (@Klarna) November 25, 2025

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How Will KlarnaUSD Stablecoin Work?

KlarnaUSD basically works like a private digital version of cash, backed by short-term securities or cash-like assets, and pegged to the US dollar. That stability sets it apart from volatile coins like Bitcoin, making it way more useful for everyday payments instead of speculation.

By using the token, Klarna can skip the traditional international payment rails, including systems like SWIFT that handle most global money transfers today.
At first, the stablecoin will mainly help Klarna move money inside its own system, especially when handling large global transfers.

Why KlarnaUSD Is a Real Game Changer

Just now the world’s biggest BNPL payment company @Klarna announced that it plans to issue its own stablecoin KlarnaUSD on @tempo, the L1 blockchain that @stripe is building.

Since the GENIUS Act, tons of financial companies and institutions… pic.twitter.com/u2riCoS9FS

— 100y.eth (@100y_eth) November 25, 2025

But the plan is to eventually use it for merchant payments and even consumer transactions. People familiar with the rollout say Klarna wants to test and fine-tune things internally before opening it up to everyone.

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Klarna CEO Gone From Opposing Crypto To Issuing Stablecoin

This whole move is a big shift for Klarna CEO Sebastian Siemiatkowski, who was openly against crypto not long ago. Earlier this year he even admitted Klarna would probably be the last major fintech to get into the space, but with digital currencies gaining legitimacy and clearer rules, he changed direction.

Launching a stablecoin fits perfectly with Klarna’s push to move beyond buy now, pay later and turn itself into a full digital bank. It shows they want to compete across more financial services instead of staying locked into one business model.

I said it then (feb 2025) and I will say it again:

We were wrong on crypto and on bitcoin, must rethink!

Being "last" I thought no one would care… but the reception was massive, so many reached out!

Nice to see first thing out there, MORE to come…https://t.co/aLPo27vyDD

— Sebastian Siemiatkowski (@klarnaseb) November 25, 2025

The timing also says a lot. Klarna’s shares have dropped more than 30 percent since the company listed on the New York Stock Exchange in September, and investors have been questioning how the loss-making fintech plans to become profitable. Rolling out a stablecoin could help diversify revenue and convince shareholders that Klarna is still innovating.

Competition in this space is heating up fast. Crypto companies are taking advantage of easier regulations in the United States to apply for banking licenses, while neobanks are rushing to launch their own stablecoins so they do not fall behind.

Whether KlarnaUSD succeeds will depend on adoption, regulation, and whether it actually cuts costs as the company claims. As more financial players enter the stablecoin market, the race to become the dominant platform will likely intensify, which could benefit users through cheaper and faster payments.

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Key Takeaways

• Klarna launching a stablecoin is a huge pivot and could help push it toward becoming a full digital bank..
• Success depends on real adoption and cost savings, not just hype, especially with competition heating up fast..

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