Coinbase Launches x402 Protocol to Enable Autonomous AI Payments
Coinbase has revived an experimental internet standard to create a payments protocol for autonomous stablecoin transactions, benefiting AI agents.
Coinbase has unveiled a new payments protocol called x402, designed to facilitate instant stablecoin transfers over standard internet protocols like HTTP. The protocol aims to enable seamless transactions for APIs, apps, and AI agents, paving the way for a more automated internet economy.
Key Features of x402
- Revives HTTP 402 Status Code: The protocol leverages the experimental "Payment Required" HTTP status code to embed payments directly into web interactions.
- Stablecoin Integration: x402 supports stablecoin payments, eliminating the need for traditional payment rails like credit cards or bank transfers, which Coinbase describes as slow, expensive, and geographically limited.
- Autonomous AI Transactions: The protocol allows AI agents to transact independently, accessing paid resources in real-time without human intervention.
x402 payment flow. Source: Coinbase
Benefits for AI Agents
x402 transforms AI agents into autonomous economic actors capable of:
- Real-time resource provisioning: Paying for hardware or data on demand.
- Micropayments: Accessing specialized services or data sources.
- Inter-agent transactions: Paying other AI systems for services.
Erik Reppel, Head of Engineering at Coinbase Developer Platform, stated, "We’re laying the groundwork for an economy run not just by people, but by software — autonomous, intelligent, and always on."
Partnerships and Use Cases
Coinbase is collaborating with:
- AWS (Amazon Web Services)
- Circle (stablecoin issuer)
- Anthropic (AI company)
- Near Protocol (AI-focused blockchain)
Gagan Mac, VP of Product Management at Circle, praised x402 for "elegantly simplifying real-time monetization" and enabling new use cases like micropayments for AI agents.
Developer and Creator Opportunities
Developers can use x402 to:
- Monetize APIs
- Create software unlocks
- Enable metered services
Content creators can also benefit by monetizing content without relying on subscriptions or credit card fees.
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About the Author
Dr. Emily Wang
AI Product Strategy Expert
Former Google AI Product Manager with 10 years of experience in AI product development and strategy formulation. Led multiple successful AI products from 0 to 1 development process, now provides product strategy consulting for AI startups while writing AI product analysis articles for various tech media outlets.