Home / Business and Economy / Klarna Bets on Crypto: Stablecoin Launch Amid Stock Slump
Klarna Bets on Crypto: Stablecoin Launch Amid Stock Slump
2 Dec
Summary
- Klarna launched KlarnaUSD stablecoin on new blockchain Tempo.
- This move aims to cut cross-border transaction fees by $120 billion.
- The initiative seeks to improve financial infrastructure efficiency.
Facing market scrutiny after its stock tumbled post-IPO, Klarna has launched KlarnaUSD, its own stablecoin pegged to the U.S. dollar. This significant move into cryptocurrency is not speculative but a calculated strategy to build a more efficient global financial infrastructure.
The stablecoin, built on a new blockchain called Tempo in collaboration with partners like Stripe and Paradigm, aims to re-engineer the costly backend of international finance. This initiative directly addresses recent margin pressures, as evidenced by a widening net loss of $95 million despite record Q3 revenue of $903 million.
Klarna is targeting the lucrative $120 billion cross-border transaction fees market. With an annual stablecoin transaction market exceeding $27 trillion, this venture positions Klarna to disrupt global payment systems and enhance its long-term profitability.
