Crypto Payments on the Rise: Kraken Launches Debit Card and Klarna Introduces Own Stablecoin

Kraken Brings Krak Card to Europe

Cryptocurrency exchange Kraken announced on November 25, 2025, the gradual rollout of the Krak Card, thereby expanding its European offering with a fully integrated multi-asset payment product^[1]. The debit card will initially be rolled out in the United Kingdom and the European Union.

What makes the Krak Card special: it offers users 1 percent cashback on every purchase, payable at their choice in local fiat currency or in Bitcoin^[1]. The card waives foreign exchange fees as well as monthly charges^[1].

Multi-Asset Payments via Mastercard

Flexible usage is made possible through integration with Mastercard's global payment network. Via the Krak app, the card supports transactions with more than 400 cryptocurrencies and fiat currencies^[1]. Users can determine themselves which assets are charged first and can exclude individual holdings from payments^[1].

"For us, every asset is money," explains Mark Greenberg, Global Head of Consumer at Kraken^[1]. Parallel to the card launch, the company is introducing new wealth-building features. So-called Vaults are designed to convert unused assets into daily returns via vetted lending protocols, with targeted yields of up to 10 percent annually^[1].

Klarna Makes Crypto Turnaround

While Kraken expands its crypto offering, Swedish payment service provider Klarna is making a surprising strategic shift. For a long time, Klarna CEO Sebastian Siemiatkowski was regarded as a crypto skeptic, but now the company is launching KlarnaUSD, its own stablecoin^[2].

The decision comes against the backdrop of dynamic market developments: According to McKinsey, stablecoin transactions now exceed $27 trillion annually and could overtake traditional payment networks before the end of the decade^[2]. The market capitalization of this booming crypto sector stands at around $275 billion^[2].

Cooperation with Stripe on New Blockchain

As the first bank ever, Klarna is launching its proprietary stablecoin on the new Stripe blockchain Tempo^[2]. The long-term goal: to significantly reduce the high estimated costs of $120 billion annually in cross-border payments for merchants and consumers^[2].

"With Klarna's reach and Tempo's infrastructure, we can challenge legacy networks and make payments faster and cheaper for everyone," explains Sebastian Siemiatkowski^[2]. The CEO and co-founder adds: "Crypto is finally at a point where it's fast, cheap, secure, and scalable. This is the beginning of Klarna's entry into crypto and I look forward to shaping the future of payments together with Stripe and Tempo."^[2]

Launch Planned for 2026

Currently, the stablecoin is still in a test environment and is not accessible to the general public^[2]. KlarnaUSD is based on Open Issuance from Bridge, a leading provider of stablecoin technology and Stripe company. The mainnet launch on Tempo is planned for 2026^[2].

Both developments demonstrate how established financial companies are increasingly relying on crypto technology to expand their payment products and reduce costs. While Kraken is betting on the practical everyday use of cryptocurrencies with the Krak Card, Klarna's stablecoin aims to disrupt traditional payment networks.