– Klarna launches USD stablecoin on Tempo blockchain – First digital bank to issue stablecoin on Tempo – Stablecoin aims to lower cross-border transaction fees

Klarna, a major fintech company, has introduced KlarnaUSD, a USD-pegged stablecoin.

Launched on the Tempo blockchain, developed by Stripe and Paradigm.
First stablecoin for Klarna, aiming to provide faster and cheaper cross-border payments.
Stablecoin transactions reportedly total $27 trillion annually.

Klarna aims to reduce transaction fees significantly, which currently amount to $120 billion annually in cross-border payments.

CEO Sebastian Siemiatkowski emphasized Klarna's potential to reshape global payments with its wide customer base and annual GMV of $112 billion.

Stablecoin Market Growth

McKinsey reports stablecoin transactions have reached $27 trillion annually, indicating rapid growth.
ECB policymaker Olaf Sleijpen expressed concerns about financial stability due to this growth.
Despite concerns, companies like Visa are launching stablecoin-related programs.

Visa's pilot program facilitates fiat-to-stablecoin payments, allowing recipients to receive USD-backed stablecoins.