Coinbase, in partnership with Cloudflare, is launching the x402 Foundation, a new initiative to establish x402 as the universal standard for AI-powered payments. The goal is to create a neutral, open protocol that unlocks the full potential of agentic commerce, enabling seamless and autonomous transactions between AI agents, businesses, and end users.
At its core, the x402 protocol reimagines internet payments by leveraging the HTTP “402 Payment Required” status code. This makes it possible to embed payments directly into everyday web interactions, so AI agents, APIs, and applications can exchange value just as easily as they exchange data. By removing the friction of traditional systems, x402 paves the way for automated, scalable digital commerce.
Although adoption is still in its early stages, the ecosystem is expanding quickly as developers and companies begin to recognize x402’s potential. One of the most immediate applications is in pay-per-use AI and research, where users can access models and premium content on a per-request basis without needing subscriptions. Another fast-growing use case is on-demand data and signals, which allows organizations to pay as they go for scraping, news feeds, and real-time analytics.
The protocol is also transforming the creator economy. Instead of relying only on subscriptions, creators can receive micropayments or tips for individual pieces of content, while optional identity attestations are starting to emerge as an added layer of trust. In the infrastructure space, x402 is being tested in pilots for storage, compute, and content delivery, following a similar pay-as-you-go model that makes these services more flexible and scalable. Finally, the protocol is opening the door to agentic commerce, where AI agents can transact directly with one another, using x402 for automated payments in workflows that mirror MCP-style systems.
As momentum builds, x402 is positioned to become the backbone of agent-driven economies, redefining how value flows across the internet. To ensure it remains open and trustworthy, the x402 Foundation will oversee transparent governance, foster collaboration, and welcome contributions from across the ecosystem.
Rethinking Payments for the Machine Economy
Traditional payment systems were designed for people, not machines. They depend on intermediaries, subscriptions, and manual steps that make it nearly impossible to scale agentic commerce. x402 solves this challenge by enabling real-time transactions powered by stablecoins, delivering speed, security, and a frictionless experience.
The x402 Foundation will play a central role in guiding this transformation. Its work will focus on three key areas. First, governance will ensure x402 remains a neutral, open standard that developers, businesses, and AI platforms can adopt with confidence. Second, ecosystem growth will be driven by providing developers with grants, tools, and resources to accelerate innovation on x402. Third, interoperability will guarantee that the protocol works seamlessly across platforms, industries, and geographies, creating a truly universal framework for AI-driven commerce.
Enabling Autonomous Transactions
With the x402 Foundation, we are laying the groundwork for a future where AI agents can transact on their own, unlocking entirely new workflows and business models. Dynamic AI agents will be able to purchase data, services, or compute resources in real time, completing tasks without the need for human involvement.
At the same time, businesses can introduce micropayments at scale, monetizing APIs, content, or services on a pay-per-use basis and moving beyond the limitations of traditional subscriptions. Looking further ahead, autonomous systems such as self-driving taxis or automated supply chains could manage their own finances, seamlessly handling payments and expenses without human oversight.
