Klarna partners with Privy to develop crypto wallet

Klarna has announced a research partnership with Stripe-owned Privy to create a cryptocurrency wallet for its users. The collaboration follows the recent launch of Klarna's stablecoin, KlarnaUSD, and aims to integrate crypto into everyday financial services. This marks a shift for Klarna's CEO, who previously expressed skepticism about cryptocurrencies.

On December 11, 2025, Klarna, a digital bank and payments provider, revealed a collaboration with Privy, a wallet infrastructure platform owned by Stripe. The partnership focuses on researching and designing wallet solutions for cryptocurrency products targeted at Klarna's users, as stated in a news release.

This initiative builds on Klarna's recent entry into the crypto space with the launch of its in-house stablecoin, KlarnaUSD, last month on the Tempo blockchain, developed by Stripe and Paradigm. Klarna's CEO and co-founder, Sebastian Siemiatkowski, who was once described as a 'vocal crypto skeptic,' highlighted the potential for mainstream adoption. 'Millions already trust Klarna to help them manage everyday spending, saving and shopping. That puts us in a unique position to bring crypto into the financial lives of normal people, not just early adopters,' Siemiatkowski said. He added, 'The technology has matured, and with Privy we plan to build products that feel as intuitive as any other Klarna feature. This is how mainstream adoption happens: simple, safe, and part of daily life.'

Privy, which powers over 100 million accounts for more than 1,500 developers including platforms like OpenSea and Hyperliquid, will provide the infrastructure. 'We’re proud to partner with world-class fintechs like Klarna, providing the secure, enterprise-ready infrastructure they need,' said Henri Stern, Privy’s CEO and co-founder. 'Privy aims to be the backbone for any business that wants to harness the exciting capabilities crypto and stablecoins offer.'

The move comes amid growing crypto adoption, with an Andreessen Horowitz estimate citing 716 million global cryptocurrency holders and 40 million to 70 million monthly transactors, increasing by 10 million annually. Klarna, which reported a 38% jump in its global seller base to 850,000 in Q3 2025, sees opportunities to enhance margins and user engagement through faster, cheaper cross-border payments and integrated services like savings or loans in KlarnaUSD. However, challenges remain, as consumer interest in stablecoin payments is low without clear benefits, limiting the market for proprietary stablecoins like KlarnaUSD and PayPalUSD.

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