Klarna isโ launching a dollar-backed stablecoin,KLarnaCoinโค (KNC),as competition intensifies in โฃthe digital payments landscape,the Swedish buy-now-pay-later giant announced โTuesday. The new cryptocurrency will be โfully backed by U.S.โ dollarโ reserves andโ aims toโ facilitate โฃsmoother and more transparent transactions within Klarna’sโฃ ecosystem and beyond.
The move positions Klarna directly against other fintech firms and established players vying โfor dominance in the rapidly evolving world of digital currencies and payments. Stablecoins, pegged to a stable asset like the U.S. dollar, offer aโ potentialโ bridge between traditional finance and the volatile cryptocurrency market, and Klarna’s entryโฃ signalsโ a belief โin โขtheir โgrowing importance for โeveryday commerce. The launch willโฃ initiallyโค be available to Klarna’s 150 million global users and is expected toโค expand access over time, โคperhaps reshaping how consumers and merchants interact within the Klarna app and across the broaderโ digital economy.KLarnaCoin willโ be โขissued by Klarna and initially available within the Klarna app in the United States and Sweden, with plans forโ further expansion. Users will be able to seamlesslyโ convert โtheir Klarnaโ balances โinto KNC and use โit for purchases, โขpotentially benefiting fromโค fasterโข settlement times and โlower transaction fees. The stablecoin is being developed in partnership with Sigil Systems, a blockchain infrastructure โฃprovider, and will operate on the Polygon blockchain network.
“We believe that stablecoinsโฃ can revolutionize the way people pay,” said Klarna CEO โSebastian โSiemiatkowski in a statement.”KLarnaCoin will provide our customers with a โคmore convenient, transparent, and cost-effective way to manage their finances and make purchases.”
The stablecoin market โฃhas faced increased โขregulatory scrutinyโค following theโฃ collapse of TerraUSD (UST) in 2022, highlighting the importance of robust โbacking and transparency. โKlarna emphasizes thatโ KNC will be fullyโ backed byโ U.S. dollar reserves held in custodyโ by Fidelity Digitalโค Assets, aiming to address those concerns and build โtrust with users. The company will โฃpublish monthly attestation reports verifyingโข the reserves.
