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Stockholm, December 12, 2025.
Klarna, the global buy-now-pay-later leader, has officially launched a self-custodial cryptocurrency wallet that natively supports its newly issued KlarnaUSD stablecoin, marking one of the most aggressive mainstream crypto integrations of 2025.
The move transforms Klarna from a payments fintech into a blockchain-enabled neobank, offering users near-instant, sub-penny cross-border transactions without intermediaries.
Key Takeaways
- Klarna introduces KlarnaUSD, a fully reserved USD stablecoin issued on the high-speed Tempo blockchain
- Self-custodial wallet built with Privy eliminates seed phrases while keeping users in full control of funds
- Transactions cost ~$0.001 with 0.6-second settlement, up to 99% cheaper than traditional card or wire transfers
- Full mainnet launch planned for 2026 after regulatory approvals in 26 markets
- Targets Klarna’s 114 million active consumers, potentially the largest single crypto onboarding event in crypto history
From Crypto Skeptic to Stablecoin Issuer
Only two years ago, Klarna CEO Sebastian Siemiatkowski publicly called cryptocurrencies speculative and volatile.
The pivot began in November 2025 when Klarna quietly issued KlarnaUSD via Bridge (acquired by Stripe for $1.1 billion) on the Tempo network, a layer-1 blockchain optimized for payments.
The stablecoin is backed 1:1 by cash and cash equivalents, audited in real time, and designed primarily to slash Klarna’s own $118 billion annual cross-border settlement costs before opening it to consumers and merchants.
Wallet Details: Self-Custody Made Simple
Announced December 11, the Klarna Wallet is powered by Privy, the embedded wallet infrastructure behind 100+ million accounts.
Unlike typical crypto wallets, it uses passkeys, biometrics, and social recovery, removing the notorious 12–24 word seed phrase barrier that has kept mainstream users away.
Users can:
- Hold Bitcoin, Ethereum, Solana, and KlarnaUSD
- Send money globally for fractions of a cent
- Pay merchants that accept stablecoins directly from the Klarna app
- Potentially earn yield on idle KlarnaUSD balances (feature roadmap 2026)
Strategic partnerships with Stripe ecosystem companies (Tempo, Bridge, Privy) give Klarna a first-mover advantage in the race to bring stablecoins to everyday shopping and remittances.
Industry Reaction and Competitive Landscape
Analysts see the launch as validation of stablecoins entering the “Visa-killer” phase.
PayPal’s PYUSD, Circle’s USDC, and now KlarnaUSD are all racing for merchant and consumer volume.
X (formerly Twitter) lit up with bullish takes:
“Klarna just did to crypto onboarding what Venmo did to P2P – it became invisible and normal.” - @sytaylor
Klarna shares rose 6% in early trading following the announcement, partially recovering from a tough 2025.
Conclusion
By combining its massive consumer base with self-custodial technology and an ultra-low-cost stablecoin, Klarna is positioning itself as the bridge between traditional finance and the open blockchain rails.
If regulatory approvals arrive on schedule, 2026 could mark the year stablecoins finally go mainstream, with Klarna leading the charge.
Read Next:
- The Neobank Transition Report
- USDT November 2025 Market Report
- Where Stablecoins Are Being Spent (2025 New Report)
FAQs:
1. What is KlarnaUSD stablecoin?
KlarnaUSD (KUSD) is a U.S. dollar-pegged stablecoin issued by Klarna, fully backed 1:1 by cash reserves and running on the Tempo blockchain for near-zero fees.
2. Is the Klarna crypto wallet self-custodial?
Yes, built with Privy, the wallet is fully non-custodial (you own the keys) but uses passkeys and biometrics instead of seed phrases.
3. When will Klarna crypto wallet and KlarnaUSD be available?
Testnet live now; mainnet and global rollout scheduled for 2026 pending final regulatory clearance.
4. How much do Klarna stablecoin transactions cost?
Typical fees are ~$0.001 per transaction with sub-second settlement on Tempo network.
5. Can I use Klarna wallet for Bitcoin and other cryptocurrencies?
Yes, the wallet supports BTC, ETH, SOL, and other major assets alongside KlarnaUSD.
6. Is KlarnaUSD safe and regulated?
KlarnaUSD is issued under applicable licenses, backed 1:1 by USD reserves, and subject to regular audits and compliance with U.S. and EU frameworks.
