Klarna Will Launch Stablecoin on Tempo in Effort to 'Challenge Old Networks'

Klarna, a Swedish fintech institution that provides “buy now, wage later” services, is launching its ain stablecoin connected layer-1 web Tempo, according to a Tuesday press release.

The token volition beryllium called KlarnaUSD erstwhile it debuts adjacent year, alongside the mainnet for the web being developed by payments elephantine Stripe and task steadfast Paradigm.

Klarna said it present sees stablecoins arsenic a mode to “dramatically trim costs for some consumers and merchants”—but it acknowledged that its co-founder and CEO, Sebastian Siemiatkowski, was erstwhile a vocal crypto skeptic. In 2021, helium told CNBC helium was “deeply worried” astir Bitcoin’s promotion connected societal media, urging regulators to measurement in.

“With Klarna’s standard and Tempo’s infrastructure, we tin situation aged networks and marque payments faster and cheaper for everyone,” helium said successful a statement. “Crypto is yet astatine a signifier wherever it is fast, low-cost, secure, and built for scale.”

Klarna said that its stablecoin was created with assistance from Bridge, the stablecoin outgo level that Stripe acquired for a whopping $1.1 cardinal a twelvemonth ago. Bridge issues respective stablecoins, including 1 offered by Ethereum wallet MetaMask. (Disclosure: MetaMask genitor institution Consensys is 1 of 22 investors successful an editorially autarkic Decrypt.)

Klarna noted that stablecoin transactions full astir $27 trillion a year, according to estimates from consulting steadfast McKinsey, and that blockchains “could overtake bequest outgo networks earlier the decennary is out.”

As Klarna tests KlarnUSD connected Tempo’s testnet, the token isn’t yet disposable to the public. The steadfast added that it volition marque different crypto-related announcements successful the coming weeks.

Earlier this year, Klarna was among companies that drew nationalist attraction for expanding bargain now, wage aboriginal services into caller corners of user life. That included a partnership with DoorDash, allowing radical to bask burritos crossed 4 interest-free installments.

In 2022, erstwhile the cheapest Bored Ape Yacht Club NFT sold for astir $100,000, lending protocol Teller introduced an “Ape Now, Buy Later” diagnostic that mirrored Klarna’s functionality. However, Teller’s work was constricted to a prime fig of notable NFT projects.

Next Wave of Stablecoin Boom May Seem Invisible, Says Transak CEO

Later that year, an a16z-backed institution called Halliday unveiled “play now, wage later,” saying the work could assistance marque NFTs much affordable and accessible for gamers.

Klarna’s banal terms was small changed connected Tuesday astatine $29.27, according to Yahoo Finance. Its shares person fallen 35% aft debuting connected the New York Stock Exchange successful September.