Coinbase and Cloudflare to Launch x402 Foundation to Pioneer AI-Driven Payments

The crypto exchange stated that the move aims to accelerate the adoption of “agentic commerce,” where AI agents, businesses and users can transact seamlessly and autonomously.

The x402 protocol leverages the long-unused HTTP “402 Payment Required” status code, embedding payments directly into web interactions. 

This is said to allow AI agents, apps and APIs to exchange value as easily as they exchange data. 

Coinbase explained that, unlike traditional payment systems, which rely on intermediaries and subscriptions, x402 enables instant, stablecoin-based transactions that are secure and scalable.

The firm added that the foundation will focus on governance, ecosystem growth and interoperability to ensure x402 functions as an open, neutral standard. Developers will be supported with grants, tools and resources, while efforts will be made to integrate the protocol across platforms and industries.

Already, x402 is being trialled across several use cases, including pay-per-use access to AI models, real-time data feeds, creator micropayments, and storage and content delivery. 

The companies believe that future applications could see autonomous AI systems, such as self-driving taxis or supply chains, handling their own financial transactions.

Cloudflare will contribute its infrastructure expertise, adding features such as deferred payments to its “pay per crawl” beta service. 

The partners said more members would be added to the foundation over time, including e-commerce firms, AI developers and payment providers.

Coinbase described the launch as a step toward “a programmable economy,” laying the foundations for a new era of digital payments.