Swedish financial services company Klarna on Tuesday unveiled KlarnaUSD, its first stablecoin, becoming the first bank to launch a token on Tempo – a payments-focused blockchain developed by Stripe and Paradigm.

The move allows Klarna to tap into fast-growing stablecoin payment rails, which it said in an X post are already processing more than $27 trillion in annual transaction volume. Separate estimates from Visa put total stablecoin transaction volume even higher at roughly $52.4 trillion over the past year.

Klarna explained that KlarnaUSD will be used to power faster, cheaper cross-border payments for its 114 million customers and will integrate with Tempo and Bridge, Stripe's stablecoin infrastructure provider.

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