Klarna (NYSE:KLAR), a European Fintech that operates in the US, is planning to launch a dollar-based stablecoin.
Klarna, best known for credit and payments, said it would be issuing KlarnaUSD using Stripe’s stablecoin infrastructure, “Open Issuance,” which is powered by Bridge. The stablecoin is currently live on Tempo’s testnet with the public launch planned for 2026. Klarna posted on X:
“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 $27 trillion a year, we’re bringing faster, cheaper cross-border payments to our 114 million customers. Crypto is finally ready for scale. This is just the beginning. Excited to build the future with Tempo and Bridge.”
Casey Jennings, a partner in Seward & Kissel’s Investment Management Group, commented on Klarna’s pending digital dollar. Jennings said the announcement raises more questions than it answers.
“Will they issue the stablecoin in the U.S.? If so, which entity will issue it and will that entity be a state-chartered payment stablecoin issuer under the GENIUS Act, or do they plan on a different model? Can they even make a determination what to do at this time while regulators formulate rules under the GENIUS Act?”
Jennings said the proliferation of new stablecoins heightens the importance of regulators to formulate a view on what stablecoins are:
“Are they payment instruments (like traveler’s checks or money orders) evidencing a holder’s claim against the issuer, or are they more akin to money market fund shares evidencing a holder’s claim to an undivided interest in the reserves? That’s the fundamental question governing the rights and obligations of stablecoin issuers, holders, and custodians, and it remains a glaring hole. Let’s hope the regulators fill it before things go sideways.”
