Klarna is exploring the development of a simple crypto wallet through a new partnership with Privy, the wallet infrastructure platform owned by Stripe. The project follows last month’s reveal of KlarnaUSD, a U.S. dollar-backed stablecoin issued on Tempo — the payments-focused blockchain incubated by Stripe and Paradigm. Klarna said the work remains in the research phase and any launch will depend on regulatory approvals in the markets where it operates. The buy now pay later firm framed the collaboration as part of its broader effort to test how digital assets could fit into its product suite. Klarna already reaches tens of millions of users through its payments and banking services, and it is examining whether a streamlined crypto wallet could serve people who want an easier way to hold or transact digital assets. “Millions already trust Klarna to help them manage everyday spending, saving and shopping,” CEO Sebastian Siemiatkowski said. He argued that the company is “in a unique position to bring crypto into the financial lives of normal people, not just early adopters.”
Investor Takeaway
Klarna’s wallet work is exploratory but notable: the firm has scale, a stablecoin in testing, and direct access to mainstream consumers — a combination few fintechs possess.
How Does Privy Fit Into Klarna’s Crypto Roadmap?
Privy provides the infrastructure that lets apps embed wallet capabilities without asking users to manage private keys directly. The firm says it supports over 100 million accounts and works with 1,500 developers, including OpenSea and Hyperliquid. Its technology underpins billions of dollars in stablecoin and crypto transactions each month. Privy CEO Henri Stern said the company wants to be “the backbone for any business that wants to harness the exciting capabilities crypto and stablecoins offer,” and described the Klarna partnership as part of its expansion into large-scale consumer platforms. For Klarna, integrating Privy offers a way to test wallet designs that feel familiar to mainstream users while keeping the technical complexity in the background. The firm stressed that the initiative is not tied to a product release timeline and remains an experiment for now.
Why Is Klarna’s Stablecoin Launch Relevant to This Move?
The wallet exploration comes on the heels of KlarnaUSD — the company’s new stablecoin pegged to the U.S. dollar and issued via Bridge’s Open Issuance tooling. The token currently runs on Tempo’s testnet and is expected to reach mainnet in 2026. Klarna has said the stablecoin is intended to reduce cross-border payment costs, which are estimated at roughly $120 billion per year worldwide. “Crypto is finally at a stage where it is fast, low-cost, secure, and built for scale,” Siemiatkowski said when announcing the stablecoin last month. Klarna serves 114 million customers and processes $112 billion in annual gross merchandise volume — giving it a user base far larger than most crypto-native platforms. Tempo itself is gaining traction as a payments chain, having lined up design partners such as Mastercard, UBS, and prediction market platform Kalshi. Its testnet recently launched, offering a sandbox for fintechs wanting to experiment with asset issuance and payment settlement.
Investor Takeaway
Klarna entering the stablecoin space is a sharp turn from its earlier skepticism, and the firm’s scale makes it one of the most consequential fintechs to test on-chain payments.
Is Klarna Making a Larger Crypto Pivot?
The company has shifted from years of crypto caution to a more active role. Siemiatkowski was once openly skeptical, but now says the sector’s infrastructure has matured enough for Klarna to explore products that connect digital assets with consumer payments. Even so, Klarna stressed that the wallet project is an R&D exercise, not a market launch plan. Any decision to release a wallet or related features would require regulatory approval in each jurisdiction where Klarna operates. With fintech oversight tightening across regions — particularly in Europe and the U.S. — Klarna said it must map each step to relevant licensing frameworks. The firm also hinted at more crypto-related developments coming soon, noting in its blog post that another update is expected “in a week or so.” While the company did not disclose details, the timing suggests Klarna is preparing a phased rollout of on-chain tools tied to its Tempo integration.
What Comes Next?
Klarna will continue prototyping wallet designs with Privy while its stablecoin remains in testing. Any final features will need to meet both Klarna’s internal risk standards and the regulatory requirements in its key markets. For now, the company is using its wallet experiment to assess what a simplified crypto experience could look like for mainstream users who are less familiar with private keys, seed phrases or decentralized apps. Whether Klarna eventually releases a wallet will depend on how regulators treat custody, stablecoin activity and embedded crypto features inside large consumer platforms. But Klarna’s entrance into this area — even cautiously — reflects how major fintechs are starting to treat on-chain rails as practical payment infrastructure rather than fringe technology.