Klarna to launch dollar-backed stablecoin as race in digital payments heats up

Swedish fintech firm Klarna on Tuesday said it will launch a US dollar-backed stablecoin, becoming the latest major payments company to move deeper into digital assets as regulators tighten oversight of the sector.

The token, called KlarnaUSD, is currently in testing and will be available on the mainnet in 2026, will be fully backed by the US dollar the company said.

Stablecoins are cryptocurrencies whose value is tied to traditional money, and they have surged in use in recent years as traders seek a relatively steady asset to move funds between more volatile tokens.