Coinbase Launches x402 Protocol: Enabling Direct Stablecoin Payments for Websites, Supporting AI Automated Payments, Data Retrieval, and Computing Power Purchases
AI Can Now “Swipe” by Itself! Coinbase Launches New Payment Protocol x402
AI is not just for chatting anymore, now it can even “swipe by itself”! The American exchange Coinbase announced on 5/7 the launch of the new payment protocol x402, allowing AI agents to independently complete payments, search for information, and purchase computing power. This protocol is not only targeted at AI applications, but it may also change the fee logic of the internet in the future and developers’ business models.
What is the x402 Protocol
x402 allows websites or software to “directly receive stable coins through the internet”, and AI agents can automatically complete these transactions without human intervention.
– Built on the Hypertext Transfer Protocol (HTTP)
– Revives the previously forgotten “HTTP 402 – Payment Required” status code
– Supports real-time payments in stable coins (USDC)
– Supports automatic API billing, AI authorization, microtransactions, and other functions
– Officially announced on May 6
Coinbase positions x402 as a “network billing mechanism redesigned for the AI generation”
The protocol is launched in collaboration with Coinbase, AWS, Circle, Anthropic, NEAR Protocol, and others
Supports developers, applications, and AI agents to receive payments with minimal code
Background and Concept
Coinbase’s Engineering Director, Erik Reppel, stated: “We are not solving payment problems, but addressing the design flaw of the internet’s lack of built-in economic systems.”
Traditional payment methods like credit cards, subscriptions, API keys, and monthly platforms come from an era “before the internet”, which are slow, expensive, restrictive, and require manual steps.
Major Breakthrough for AI Agents: From Tools to “Economic Entities”
Traditional AI tools require human input for credit cards, API recharges, and manual permission settings. But with x402, AI can now do these tasks on its own, giving AI true “economic autonomy” to independently decide and engage in transactions.
Applications for Developers and Content Creators
This protocol not only benefits AI but also significantly changes the “billing model”:
– API developers can set automatic billing based on usage, eliminating the need for subscriptions
– Software companies can sell flexible billing mechanisms such as “one-time unlocks” and “segmented billing”
– Content creators can receive microtransactions directly, bypassing platforms like YouTube, Spotify, or credit card thresholds
This is the flowchart of the x402 protocol
Risk Warning
Cryptocurrency investment is highly risky, with prices fluctuating dramatically, and you may lose your entire capital. Please assess the risks carefully.
