US-based crypto exchange operator Coinbase is aiming to improve internet payments with x402, a new protocol enabling instant stablecoin transactions directly over HTTP.
Launched on May 6, x402 is an open standard which lets developers, APIs and autonomous agents use stablecoins to pay for services within web requests.
The protocol is built on the long-unused HTTP 402 “Payment Required” status code, allowing the clients to embed payments into websites, removing the need for users to be redirected or use plugins.
Erik Reppel, Head of Engineering at Coinbase Developer Platform and co-author of the x402 whitepaper, said: “We built x402 because the internet has always needed a native way to send and receive payments—and stablecoins finally make that possible.
“Just like HTTPS secured the web, x402 could define the next era of the internet; one where value moves as freely and instantly as information. We’re laying the groundwork for an economy run not just by people, but by software—autonomous, intelligent, and always on.”
Coinbase highlighted several use cases in a statement about the launch. Many of these revolve around eradicating the need for subscription models, which are commonly used over the internet. This would mean users could pay for one news article or each use of an API rather than committing to a subscription.
Cross-border transactions are another area which Coinbase believes could be enhanced, allowing businesses to bypass the SWIFT network and other costly banking systems.
Coinbase is not working alone on this initiative, however. The company has gained support from Circle, the issuer of a digital currency pegged to USD (USDC), which sees this project as a way to boost the already growing popularity of stablecoin payments.
“USDC is built for fast, borderless, and programmable payments, and the x402 protocol elegantly simplifies real-time monetisation by removing friction around registrations, authentication, and complex signatures,” said Gagan Mac, VP Product Management at Circle.
“Together, they unlock exciting new use cases like micropayments for AI agents and apps.”
Other partners involved include: AWS, Anthropic and NEAR. Illia Polosukhin, Co-Founder of NEAR, highlighted the practicality of this payment option for the growing use of AI agents.
He said: “Our vision merges x402’s frictionless payments with NEAR intents, allowing users to confidently buy anything through their AI agent, while agent developers collect revenue through cross-chain settlements that make blockchain complexity invisible.”
Coinbase has revealed x402 is now available for developers to explore and integrate into their applications, adding that the company is excited to see what is built.
