Klarna is taking a closer step toward digital assets through a new partnership with Privy, a wallet infrastructure platform owned by Stripe. The companies will work together to research and design potential crypto wallet features aimed at helping everyday users store and move digital assets with less friction.
The announcement comes shortly after Klarna introduced KlarnaUSD, a U.S. dollar–backed stablecoin built on Tempo, a payments-focused blockchain developed by Stripe and Paradigm. While the token is still in its testnet phase, it marks Klarna’s most direct move into crypto to date.
Klarna CEO Sebastian Siemiatkowski said the company’s shift reflects both changing consumer expectations and a maturing crypto landscape. He noted that millions already rely on Klarna to handle routine spending and savings, which he believes puts the firm in a position to bring digital assets to a broader audience rather than only early adopters.
Privy, which supports more than 100 million accounts and works with platforms like OpenSea and Hyperliquid, processes billions of dollars in crypto and stablecoin activity each month. CEO Henri Stern said the firm aims to be the underlying infrastructure for businesses experimenting with crypto at scale. The Klarna collaboration, he added, reflects a growing wave of interest from major fintech companies.
The move also represents a turnaround for Siemiatkowski, who previously expressed skepticism toward crypto. His stance shifted as Klarna explored stablecoins as a way to reduce global payment costs. Cross-border fees total an estimated $120 billion each year, and Klarna believes a stablecoin could help cut those expenses across its network of 114 million customers and more than $112 billion in annual transaction volume.
KlarnaUSD is expected to launch on Tempo’s mainnet in 2026, using Bridge’s Open Issuance system. Tempo’s testnet went live recently and has already drawn attention from firms such as Mastercard, UBS, and the prediction platform Kalshi.
For now, Klarna says the wallet initiative with Privy is strictly research and development. Any new product would depend on regulatory approval in each market. The company also hinted that more crypto-related announcements may follow, suggesting another update could arrive soon.
