Klarna and Privy Team Up to Develop Crypto Wallet Features
Just weeks after announcing a stablecoin, Swedish fintech giant Klarna is taking another step into crypto. The company has teamed up with Privy, a wallet infrastructure platform owned by Stripe, to explore digital asset solutions for its users. The partnership will focus on research and development of crypto wallet features, making it easier for everyday users to store, use, and send digital assets.
“Millions already trust Klarna to manage everyday spending, saving, and shopping,” said Sebastian Siemiatkowski, CEO and co-founder. “That puts us in a unique position to bring crypto into the financial lives of normal people, not just early adopters. With Privy, we plan to build products that feel as intuitive as any other Klarna feature.”
Stablecoin KlarnaUSD Launched on Testnet, Targeting Cross-Border Payments
KlarnaUSD, a U.S. dollar-backed stablecoin issued on the Tempo blockchain, was launched with Tempo and Bridge (a Stripe-backed stablecoin infrastructure provider). The token is live on Tempo’s testnet and expected to launch on mainnet in 2026. Klarna says the stablecoin could reduce global cross-border payment costs, currently estimated at $120 billion annually.
Privy powers over 100 million accounts for more than 1,500 developers, supporting crypto-native applications like OpenSea and Hyperliquid. Henri Stern, CEO and co-founder of Privy, said the partnership will allow users to hold a wide variety of digital assets, trade safely, and transact with friends anywhere. “We’re proud to partner with world-class fintechs like Klarna, providing the secure, enterprise-ready infrastructure they need,” Stern said. “Privy aims to be the backbone for any business that wants to harness the exciting capabilities crypto and stablecoins offer.” He added that any future wallet or crypto product would require the necessary regulatory approvals before launch.
114 Million Customers to Enter Crypto via Klarna
The initiative reflects a growing trend of traditional fintechs integrating crypto tools into everyday consumer finance. Venture capital firm a16z estimates that 716 million people globally hold cryptocurrencies, with 40-70 million transacting monthly, growing by roughly 10 million users per year. Klarna itself serves 114 million customers and processes $112 billion in annual gross merchandise volume. CEO Siemiatkowski, once a vocal skeptic of digital currencies, now believes the market’s maturity and Klarna’s global reach justify this entry. The company plans to explore further crypto initiatives, with a blog post hinting at a new announcement “in a week or so,” suggesting more developments are coming soon.