Swedish fintech firm Klarna has launched its first stablecoin, KlarnaUSD, on Tempo, becoming the first bank to issue a stablecoin on the platform. KlarnaUSD is built on the Open Issuance stablecoin infrastructure platform by Bridge, a Stripe firm, and will be introduced on Tempo’s mainnet next year. Annual stablecoin transaction volumes have reached $27tn, with projections suggesting they may surpass traditional payment networks by the end of the decade. Klarna sees stablecoins as a way to significantly reduce the $120bn in transaction fees generated by cross-border payments each year. KlarnaUSD is currently live only on Tempo’s testnet for advanced testing and prototyping. Klarna’s collaboration with Stripe aims to challenge old payment networks and make transactions faster and cheaper. Klarna’s CEO, Sebastian Siemiatkowski, expressed excitement about working with Stripe and Tempo to shape the future of payments. Klarna has also made its payment options available on Apple Pay for customers in Spain, Denmark, and Sweden.

Read more at Yahoo Finance: Klarna announces KlarnaUSD stablecoin launch on Tempo