Coinbase, in collaboration with Amazon Web Services, Anthropic, Circle, and NEAR Protocol, has launched x402, a groundbreaking payment protocol that integrates stablecoin transactions directly into the internet’s core communication protocol, HTTP.
x402 revives the rarely used HTTP 402 “Payment Required” status code to enable seamless, instant payments using stablecoins like USDC within standard web interactions. This innovation eliminates the need for traditional payment methods such as credit cards, subscriptions, or API keys, allowing both humans and AI agents to transact autonomously and in real time.
How x402 Works:
- A user or AI agent requests a digital resource such as an API, file, or SaaS tool.
- The server responds with an HTTP 402 Payment Required message specifying the cost.
- The client sends a signed stablecoin payment, for example USDC, in the HTTP header.
- The server verifies the payment and grants access immediately.
This protocol enables AI agents to independently discover, purchase, and utilize resources without human intervention, supporting new use cases like micropayments for AI-driven services and real-time cloud computing. Developers can monetize APIs and software dynamically, charging precisely per usage rather than relying on monthly subscriptions or manual billing.
With stablecoin transaction fees on Layer 2 networks dropping to around one cent and over $150 billion in stablecoins circulating globally, x402 is positioned to become the internet’s native payment layer, making value transfer as seamless as data exchange.
Erik Reppel, head of engineering at Coinbase Developer Platform, emphasized that x402 lays the foundation for an economy run by autonomous software, signaling a new era where payments flow as freely as information on the web.
In summary, Coinbase’s x402 protocol is a major step toward embedding programmable, real-time stablecoin payments into the fabric of the internet, unlocking economic autonomy for AI agents and transforming how digital services are monetized.
