BNPL firm Klarna announces USD stablecoin on Stripe–Paradigm’s Tempo blockchain to cut payment costs

Buy now, pay later (BNPL) provider Klarna has introduced KlarnaUSD, a USD-backed stablecoin issued on Tempo, the payment-focused blockchain developed by Stripe and Paradigm. The goal is to lower the estimated $120 billion in annual fees generated by global payments. CEO Sebastian Siemiatkowski, who has recently shifted his stance on crypto, stated that the technology is now fast, low-cost, and scalable enough for Klarna's global operations serving 114 million customers. KlarnaUSD is currently on Tempo's testnet and is slated for mainnet launch in 2026, utilizing Open Issuance infrastructure from Stripe subsidiary Bridge. This move occurs amid significant global growth in stablecoin usage, with annual transaction volume reaching $27 trillion, prompting broader institutional interest and regulatory discussions worldwide.

(Source：The Block)