According to Financial Times News, Klarna is launching KlarnaUSD, a payment stablecoin that will run on a blockchain created by Stripe. The Swedish buy-now-pay-later giant announced this move on Tuesday, aiming to dramatically reduce cross-border payment costs by cutting out intermediaries like the Swift network. While initially for internal payments, the stablecoin is expected to eventually roll out to merchants and consumers. This comes as stablecoin issuance has surged from $200 billion to $280 billion just since the start of 2024. Klarna’s pivot follows similar moves by PayPal and Stripe, and marks a complete reversal for CEO Sebastian Siemiatkowski, who previously opposed crypto technology.
Klarna’s desperate pivot
Here’s the thing: Klarna’s stock has tanked more than 30% since its September New York listing. The company is still losing money, and its core BNPL business faces increasing regulatory scrutiny and competition. So this crypto move feels less like innovation and more like survival. They’re trying to transform from a simple lender into a full digital bank, and stablecoins are the shiny new toy that might distract investors from their fundamental problems. I mean, when your CEO goes from crypto skeptic to “last large fintech to embrace crypto” in a matter of months, you have to wonder how much of this is genuine belief versus desperation.
Stablecoin reality check
Look, stablecoins sound great in theory – cut out middlemen, reduce costs, speed up payments. But we’ve seen this movie before. Remember when every company was going to put their supply chain on blockchain? How’d that work out? The reality is that regulatory uncertainty remains massive, and we’re talking about a company that’s already struggling with profitability diving into an even more complex, compliance-heavy arena. And let’s not forget the technical infrastructure needed – they’re relying on Stripe’s blockchain, which means they’re not even building their own tech stack. Basically, they’re outsourcing the hard part while taking on the regulatory risk.
Bigger picture battle
What’s really happening here is a convergence war between traditional fintech and crypto companies. Neobanks like Revolut and Wise are working on similar initiatives, while crypto startups are applying for banking charters. Everyone’s trying to eat everyone else’s lunch. But here’s my question: does Klarna, with its core competency in consumer credit, really have the expertise to navigate stablecoin issuance and blockchain payments? Or are they just following the herd because their existing business model looks increasingly shaky? The timing feels reactive rather than strategic – they’re chasing trends because they need to show growth somewhere, anywhere.
What’s next
Klarna says they’ll announce more crypto partnerships in coming weeks, which suggests this is just the beginning of their crypto push. But I’m skeptical. Building a successful stablecoin ecosystem requires massive adoption, regulatory clarity, and technical reliability – none of which are guaranteed. And with giants like PayPal and Stripe already in the game, plus potential moves from major banks post-Genius Act, Klarna might be late to a party that’s already overcrowded. They’re betting big on crypto to transform their fortunes, but it feels like putting a band-aid on a broken business model.
