Klarna launches stablecoin to cut cost of cross-border payments #
Klarna AB is introducing a U.S. dollar-backed stablecoin as part of its move into digital-asset payments, marking a strategic shift for the Swedish “buy now, pay later” provider
The token will be fully collateralised by cash and short-term U.S. government securities held in regulated institutions, and initially targeted at merchant settlement use-cases rather than direct consumer holdings. Klarna sees the stablecoin as a way to lower fees and speed cross-border transfers in its payment network
The launch reflects growing momentum among fintech firms to issue their own tokenised currencies as they seek to control more of the payments stack and compete with both incumbents and crypto-native players. Observers note the move raises questions about regulatory oversight, reserve transparency and how such stablecoins will integrate with wider financial-infrastructure frameworks.