Coinbase Pushes Stablecoins for AI Payments Infrastructure Amid Rising Competition

Coinbase is shifting its focus toward stablecoins, aiming to establish them as the core infrastructure for AI-driven payments. The company hosted a hackathon in Brooklyn where developers from around the world created tools enabling software to send and receive payments using stablecoins. Projects included a publishing platform with instant payments, a chatbot charging for answers, and a peer-to-peer marketplace operating outside traditional finance systems [1]. The event emphasized building a payment layer for AI systems that can handle tasks like buying services, paying for cloud usage, or making microtransactions automatically and in real-time [1].

At the heart of Coinbase’s strategy is x402, an open-source protocol built on the HTTP error code “402 Payment Required.” This system allows bots and apps to charge and settle payments in stablecoins instantly. Nemil Dalal, who leads Coinbase’s Developer Platform, stated that this approach aligns with Brian Armstrong’s long-term vision, which envisions a global, open financial system [1]. Ben Reilly’s team, one of the hackathon participants, integrated x402 into a chatbot that could charge users directly, highlighting the potential of stablecoin payments in AI-driven applications [1].

The rationale for using stablecoins is both practical and strategic. As Alvaro Echevarria Cuesta noted, building on stablecoins offers developers more freedom than relying on centralized payment platforms like Stripe or PayPal [1]. Coinbase aims to become the go-to toolkit for developers in the same way Amazon Web Services became a foundational part of the internet [1].

However, Coinbase is not the only player in the space. Stripe has acquired Bridge to develop stablecoin infrastructure and is working on its own blockchain. PayPal has also launched its stablecoin, leveraging its large user base. Meanwhile, Visa and Mastercard continue to hold significant advantages through their existing merchant systems and global presence [1]. The competition is intensifying, and Coinbase’s push comes as U.S. lawmakers pass the first national law regulating stablecoins, providing legal clarity that could accelerate adoption [1].

Vishal Gupta, a former Coinbase and Circle executive, emphasized that regulatory clarity is a catalyst for innovation, enabling the next wave of builders to enter the space [1]. He now leads True Markets, a firm backing stablecoin payment systems, and believes that crypto is transitioning from speculative assets to real-world financial tools [1].

While most of Coinbase’s current revenue still comes from trading, the company is seeking to diversify into more sustainable models. The recent public listing of Circle, with which Coinbase shares stablecoin revenue, further signals the growing importance of this asset class [1]. Analysts suggest that as AI becomes more integrated into financial services and consumer applications, the need for a stable, efficient, and programmable payment layer will only increase [1].

Stablecoins, with their peg to fiat currencies and relative price stability, are seen as a key enabler of this transition. As NOWPayments reported, more than 45% of its transactions are now settled in stablecoins, highlighting their increasing adoption across crypto services [3]. For Coinbase, the strategic bet is not just about capturing market share—it’s about shaping the future of digital finance, one stablecoin at a time [1].

Source:

[1] https://coindoo.com/coinbase-turns-to-stablecoins-in-race-to-power-ai-payments/

[2] https://coincentral.com/best-sociafi-blockchain-2025-xrp-coldware-and-ethereum-capture-70-of-newbie-crypto-adopters/

[3] https://www.platinumcryptoacademy.com/press-release/tearing-down-the-walls-around-ai-introducing-nuwa-ai/