Klarna Announces Crypto Integration Plans Ahead of $15 Billion US IPO

• Final Thoughts: Klarna's IPO

Swedish fintech company Klarna has announced plans to integrate cryptocurrency services into its platform before its anticipated $15 billion initial public offering (IPO) in the United States, scheduled for April 2025.

CEO Sebastian Siemiatkowski made the announcement through a post on X, formerly Twitter, on February 10, 2025. “Ok. I give up. Klarna and me will embrace crypto! More to come… Last large fintech in the world to embrace it. Someone had to be last,” wrote Siemiatkowski.

Ok. I give up. Klarna and me will embrace crypto! More to come

Yes I know! This post will get a huge sigh and 2 views 😂

But it still feels historic. Last large fintech in the world to embrace it. Someone had to be last. And that’s a milestone as well of some sort… 🥳

— Sebastian Siemiatkowski (@klarnaseb) February 8, 2025

The company currently serves more than 85 million users worldwide and processes approximately $100 billion in transaction volume. Klarna’s merchant network extends to over 500,000 partners, with 30% of its volume coming from debit rather than credit transactions.

This move represents a change in direction for Siemiatkowski, who expressed caution about cryptocurrency in April 2021. During a CNBC interview at that time, he said, “There’s a lot of promise in cryptocurrencies, but at the same time, I’m deeply worried that the big risk is like when my cab driver is asking me if he should invest in Bitcoin.”

Following the announcement, Siemiatkowski reached out to the cryptocurrency community for suggestions on implementation strategies. He credited three entrepreneurs, introduced by Sequoia Capital’s Andrew Reed, for helping change his perspective on cryptocurrency’s potential.

Circle’s Chief Product and Technology Officer, Nikhil Chandhok, proposed that Klarna could implement stablecoin settlements for merchant transactions to improve processing speed and cash flow. He also suggested integrating crypto wallets to enable direct cryptocurrency payments for Klarna purchases.

CoinList CEO Raghav Gulati recommended allowing payments with stablecoins on low-cost networks like Solana. He also suggested that Klarna consider holding Bitcoin in its treasury as a hedge against inflation.

Final Thoughts: Klarna’s IPO

The timing of this decision aligns with Klarna’s preparations for its US IPO. The listing, expected to be one of the largest of 2025, targets a valuation of up to $15 billion.

Klarna’s history includes becoming Europe’s most valuable startup in 2021, when a fundraising round valued it at $46 billion. This previous success in traditional financial technology provides a foundation for its expansion into cryptocurrency services.

The company’s extensive user base and established merchant network could provide immediate scale for any cryptocurrency features it implements. These could include integrating cryptocurrency as a payment option, enabling merchants to accept digital currency payments, or developing a built-in cryptocurrency wallet.

Frank Schuil, co-founder and chairman of Nordic cryptocurrency exchange Safello AB, provided context by pointing out that Klarna processed $96 billion in gross merchandise value (GMV) in 2023.

The integration of cryptocurrency services adds to Klarna’s existing financial technology offerings, which include buy-now-pay-later services and traditional payment processing. The company’s infrastructure, which handles billions in transactions annually, positions it to process large volumes of digital asset transactions once integration is complete.

Technical details about the cryptocurrency integration remain undisclosed. The company has not announced specific features or launch dates for the new services.

The planned IPO will take place on a US exchange, though the specific exchange has not been announced. This listing will make Klarna one of the largest financial technology companies to go public in 2025.