Coinbase Introduces x402 Protocol for Seamless Stablecoin Payments
Coinbase has launched a new payments protocol called x402, designed to facilitate instant stablecoin payments directly over the internet communication protocol HTTP (Hypertext Transfer Protocol). This development enables Application Programming Interfaces (APIs), applications, and AI agents to transact autonomously, creating a faster and more automated internet economy.
The x402 protocol revives the experimental HTTP 402 “Payment Required” status code to establish a native payment system for the internet. According to Coinbase, traditional payment methods such as credit cards, bank transfers, and subscriptions are outdated, being slow, expensive, and geographically restricted. In contrast, x402 embeds stablecoin payments into web interactions, requiring minimal code integration and catering to both human and AI agent transactions.
Erik Reppel, head of engineering at Coinbase Developer Platform and co-author of the x402 white paper, stated, “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, noted that x402 simplifies real-time monetization and unlocks new use cases such as micropayments for AI agents and applications.
The launch of x402 is a collaborative effort involving AWS (Amazon Web Services), stablecoin issuer Circle, AI company Anthropic, and AI-focused proof-of-stake layer-1 blockchain Near Protocol. This protocol grants AI agents economic autonomy by enabling them to transact independently without human intervention. They can access paid resources in real-time, provision and pay for hardware resources, and engage in micropayments for specialized data sources.
Developers can leverage the protocol to monetize APIs, create software unlocks, and enable metered services that dynamically charge users based on actual resource usage. Content creators can also benefit by monetizing their content without relying on blanket subscriptions or credit card minimums and fees.
