Klarna co-founder and CEO Sebastian Siemiatkowski stated that the company’s 114 million customers and $112 billion in annual GMV give it the scale to transform payments globally.Klarna said its new stablecoin will operate on Tempo, an independent blockchain created by Stripe and Paradigm.The company said it is targeting the possible market of $27 trillion in stablecoin transactions in a year. It predicted that stablecoin transactions could “overtake legacy payment networks” before the end of the decade.
Klarna (KLAR) announced on Monday that it’s planning to launch its own stablecoin, dubbed KlarnaUSD, in 2026.
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The company said its new stablecoin will operate on Tempo, an independent blockchain created by Stripe and Paradigm, for payments. Klarna will be the first company to launch a stablecoin on Tempo, which will allow the firm to test, prototype, and integrate its infrastructure before the mainnet launch in 2026.
KLAR’s stock edged 0.7% higher at market open. On Stocktwits, retail sentiment around the fintech dipped to ‘bullish’ from ‘extremely bullish’ as chatter fell to ‘high’ from ‘extremely high’ levels of the past day.
Stablecoins To ‘Overtake’ Traditional Payments
The company said it is targeting the possible market of $27 trillion in stablecoin transactions in a year, citing estimates from McKinsey. Klarna predicted that stablecoin transactions could “overtake legacy payment networks” before the end of the decade.
“With 114 million customers and $112 billion in annual GMV [gross merchandise value], Klarna has the scale to change payments globally.”
– Sebastian Siemiatkowski, Co-founder and CEO, Klarna
The Cross-Border Payments Race
The Swedish fintech is joining the race to capitalize on cross-border payments following the passage of the GENIUS Act in July. PayPal (PYPL), for instance, recently launched its PYUSD stablecoin. Earlier this month, JPMorgan Chase (JPM) rolled out its JPM Coin (JPMD) on Coinbase (COIN) to facilitate cross-border payments, making it the first bank-issued USD deposit token. It is currently only available to institutional clients.
Klarna made a strong debut on the New York Stock Exchange (NYSE) in September but has since fallen more than 43%.
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