Coinbase Devs Introduces x402: Letting AI Pay with Crypto

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Coinbase Developers Introduces x402: Letting AI Agents Pay with Crypto

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 14, 2025

Key Takeaways

Coinbase’s x402 protocol allows AI agents to make stablecoin payments on Ethereum without any human input;
The system uses the rarely applied HTTP 402 status code and EIP-3009 to enable bot-driven transactions;
With x402, AI agents could handle tasks like paying for data, fuel, or storage independently using crypto.

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Coinbase Developers Introduces x402: Letting AI Agents Pay with Crypto

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Coinbase $1.81B developers Kevin Leffew and Lincoln Murr have introduced the x402 payments protocol, a tool designed to let artificial intelligence (AI) agents carry out transactions on Ethereum ETH $3,025.77 without any human assistance.

The protocol allows software to automatically receive a payment request, send a stablecoin transfer, and receive the result. It has already been published on Coinbase’s GitHub page.

Their work highlights a web feature called HTTP 402, a status code originally created to signal that a payment is required before content is delivered. Although rarely used in practice, Leffew and Murr noted that this standard can serve a new function on Ethereum.

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By combining HTTP 402 with Ethereum Improvement Proposal 3009 (EIP-3009), which allows token transfers through signed messages, the x402 protocol enables agents to act on behalf of users without needing full access to private keys.

This makes it possible for bots to complete transactions with only permission to act, rather than full control of wallets.

This system could support a wide range of use cases. An autonomous vehicle, for example, could pay for tolls or fuel on its own. AI-based software could purchase access to online services or data. Even tasks like long-term file storage could be handled directly by machine agents using stablecoins.

Leffew and Murr also pointed out that Ethereum's ability to support secure transactions, along with the availability of stablecoins, allows AI agents to follow rules, settle payments, and reduce the need for human oversight.

Recently, Circle, the USDC USDC $1.00 stablecoin issuer, announced plans to launch its own blockchain called Arc before the end of 2025. What is it? Read the full story.