Coinbase Launches x402 Protocol for Instant Stablecoin Payments

Coinbase has introduced a new payments protocol for online payments that enables stablecoin transfers over standard internet protocols and AI agents to
autonomously.On May 6,
announced that it is launching a protocol called x402 for instant stablecoin payments directly over the internet communication protocol HTTP (Hypertext Transfer Protocol).It allows Application Programming Interface (APIs),
, and AI agents to transact seamlessly, “unlocking a faster, automated internet economy,” the firm stated.Coinbase said that x402 “is fixing the internet’s first mistake.” The protocol resurrects the experimental HTTP 402 “Payment Required” status code to create a seamless payment system native to the internet.
The firm noted that traditional payment rails, such as credit cards, bank transfers and subscriptions, “were built for a pre-internet world.” They’re slow, expensive, geographically limited, and “riddled with manual steps,” it added.
However, x402 embeds stablecoin payments directly into web interactions, requiring minimal code integration, and is designed for both humans and AI agents to transact value as easily as exchanging data.
The head of engineering at Coinbase Developer Platform and co-author of the x402 white paper, Erik Reppel, said, “We’re laying the groundwork for an economy run not just by people, but by software — autonomous, intelligent, and always on.”
Gagan Mac, vice president of product management at Circle, said x402 “elegantly simplifies real-time monetization” and unlocks “exciting new use cases like micropayments for AI agents and apps.”
Coinbase is launching the new protocol in partnership with AWS (Amazon Web Services), stablecoin issuer Circle, AI company Anthropic and AI-focused proof-of-stake layer-1 blockchain Near Protocol.
AI agents can achieve economic autonomy by independently transacting without human intervention. The protocol enables AI agents to access paid resources in real-time based on their needs and eliminates dependency on pre-paid credits, API keys, or human-managed accounts.
AI agents can also provision and pay for hardware resources in real-time, access specialized data sources through micropayments, and pay other AI systems for services.
The x402 protocol essentially transforms AI agents from tools that require constant human interaction into autonomous economic actors that can independently discover, purchase and utilize resources to accomplish their goals.
Developers can use the protocol to monetize APIs, create software unlocks and enable metered services that dynamically charge users based on actual resource usage, while content creators can monetize their content without the need for blanket subscriptions or credit card minimums and fees.
Coinbase has introduced the x402 payments protocol, a groundbreaking development aimed at enhancing the autonomy of AI agents. This protocol is designed to transform AI agents from tools that require constant human interaction into autonomous economic actors. By leveraging the x402 protocol, AI agents can provision compute resources and pay for them on a per-use basis, enabling scenarios such as autonomous cloud computing. This means AI agents can independently discover and procure third-party cloud resources, contextual data, and API tools, thereby reducing the need for human intervention.
The x402 protocol supports agent-led commerce by enabling autonomous AI agents to request and pay for digital assets, including stablecoins like USDC. This capability opens up a range of real-world use cases, such as per-play gaming models, per-inference AI services, and per-article paywalls for publishers. The protocol is built on HTTP rails, making it chain-agnostic and capable of settling payments in approximately 200 milliseconds using stable assets. This high-speed, low-friction payment system eliminates the need for accounts, subscriptions, or API keys, making it an efficient and seamless solution for AI agents.
The introduction of the x402 protocol marks a significant step forward in the development of autonomous AI agents. By enabling machine-native payments, the protocol allows AI agents to operate more independently, reducing the reliance on human oversight and intervention. This advancement has the potential to revolutionize various industries by streamlining processes and enhancing efficiency. The protocol's open-source nature further encourages innovation and collaboration within the developer community, paving the way for future advancements in AI and blockchain technology.

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