A stablecoin is a digital token designed to keep a steady value, usually linked to the US dollar. Klarna says this move will help lower the high fees that often come with cross-border transactions.
The stablecoin is built on the blockchain created by the payments firm Stripe, a platform known for handling billions in online transactions. Klarna believes the new token will cut costs for shoppers and merchants while keeping the payment process simple.
How KlarnaUSD Works
KlarnaUSD aims to solve a problem that affects anyone who pays online in a different currency. Traditional international payments include bank fees, card charges, and slow settlement times. A blockchain system settles payments much faster because it uses shared digital records instead of banks acting as middlemen. When someone sends KlarnaUSD, the transfer is verified on Stripe’s private blockchain, which is designed for speed and low costs.
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
One real-world example shows why this matters. A small clothing brand in Germany selling to customers in the United States might lose several per cent of every sale to currency conversion and card fees. By accepting KlarnaUSD, the brand can receive payments quickly with much smaller costs, keeping more revenue and improving cash flow. For buyers, the experience feels the same, but the behind-the-scenes savings are meaningful.
A Trend Toward Cheaper Digital Money
Klarna’s move fits into a broader trend. Global stablecoin use has grown sharply in recent years. Research firm Kaiko reported that stablecoins now make up more than 70% of all crypto trading volume. Many companies are exploring how stablecoins can help lower settlement costs, speed up payments, and support digital commerce without adding complexity for users. Klarna is joining this movement with one clear goal: to make payments cheaper.
🚨 BREAKING: Klarna launches KlarnaUSD stablecoin with Bridge on Tempo* the new Payments focussed Blockchain.
Klarna’s CEO called Bitcoin a “decentralized Ponzi scheme.”
Feb 2025, tweeted: “Ok. I give up.”
Now, among the first companies on Tempo.
What changed? 🧵 pic.twitter.com/NBRVwPyX9v
— Simon Taylor (@sytaylor) November 25, 2025
This also comes at a time when regulators are paying closer attention to digital money. Stablecoins tied to real assets, such as the dollar, are gaining favour because they offer a bridge between traditional finance and emerging blockchain systems. KlarnaUSD fits that pattern by offering a familiar on-ramp into crypto without requiring users to learn new tools.
Disclaimer
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