Klarna Explores Crypto Infrastructure With Privy Partnership

Digital bank and flexible payments provider Klarna has launched a collaboration with wallet infrastructure platform Privy.

Announced in a Thursday (Dec. 11) news release, the partnership will see the companies research and design potential wallet solutions for cryptocurrency products aimed at Klarna users.

The project follows the recent launch of Klarna’s in-house stablecoin, KlarnaUSD, and is aimed at helping everyday users enter the crypto space.

“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,” Klarna Co-founder and CEO Sebastian Siemiatkowski said in the release..

“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.”

The announcement cites an estimate from venture capital firm Andreessen Horowitz that 716 million consumers hold cryptocurrencies worldwide and 40 million to 70 million transact with cryptocurrency per month, a number that is growing by 10 million a year.

Privy, according to the announcement, powers more 100 million accounts for 1,500-plus developers, including crypto-native platforms like OpenSea and Hyperliquid, and helps users orchestrate billions in crypto and stablecoin movements each month.

“We’re proud to partner with world-class fintechs like Klarna, providing the secure, enterprise-ready infrastructure they need,” said Henri Stern, CEO and co-founder of Privy. “Privy aims to be the backbone for any business that wants to harness the exciting capabilities crypto and stablecoins offer.”

Klarna launched KlarnaUSD last month on Tempo, a new payments-focused blockchain built by Stripe and Paradigm which has since opened its doors to more companies.

As noted here at the time, the initiative marks a shift for Siemiatkowski, who has historically been skeptical of crypto.

“With Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone,” the CEO said after the launch, adding that crypto infrastructure has reached a point of speed, security and cost efficiency sufficient for high-volume payment use cases.

As PYMNTS wrote at the time, the overall stablecoin market is evolving quickly, with a number of other payments companies entering the space.

“We do think it’s going to be real. The technology is too efficient. It’s just right for this type of deployment,” Mark Nelsen, head of product for Visa Commercial Money Solutions, said in an interview with PYMNTS CEO Karen Webster.