Coinbase’s x402 AI Payments Protocol Sees 10,000% Increase in Activity
Coinbase’s experimental x402 payment protocol, designed to enable AI agents and humans to pay in stablecoins directly over the internet, has witnessed an explosion in activity. The protocol, which revives the HTTP 402 “Payment Required” code, allows for instant on-chain stablecoin payments, eliminating the need for credit cards or intermediaries. According to data from Dune Analytics, the number of transactions in the payment protocol has increased by more than 10,000% in the last month.
Coinbase’s x402 Revives HTTP 402 to Enable Instant On-Chain Payments
Coinbase’s x402 protocol was originally introduced in May, reimagining the long-unused HTTP 402 “Payment Required” status code as a native Internet payment layer. This innovation enables automatic, real-time transactions without the need for credit cards or intermediaries. Users or AI agents can request a service, receive a 402 payment request, and send a signed stablecoin payment that the system verifies on-chain. From October 14th to 20th, the protocol processed nearly 500,000 transactions, a 10,780% increase from the previous month.
Key Takeaways
The sudden increase in activity comes amid growing attention for “agentic AI,” autonomous artificial intelligence systems capable of managing finances and resources. According to a16z Crypto’s “2025 State of Crypto” report, such agents could enable autonomous transactions worth up to $30 trillion by 2030. Coinbase developers Kevin Leffew and Lincoln Murr explained that x402 could enable a new layer of finance for digital agents, allowing them to pay for computing power, storage, or even transportation without human intervention.
Developers Adopt x402-Based Tokens
Developers have started using the x402 framework to launch new tokens, sparking a wave of x402-based memecoin projects. According to KuCoin Ventures, this trend was strong enough that CoinGecko added “x402 tokens” as a separate category, which has since become a $180 million market, growing by 266% in just 24 hours. Coinbase’s new protocol underscores a larger shift toward integrating AI and on-chain finance, where machines can autonomously process payments and data without third parties.
Coinbase Faces Scrutiny After AI Coding Tool Vulnerability Exposes Security Risks
Last month, an exploit in Cursor, the AI-powered coding assistant reportedly used by all Coinbase engineers, sparked widespread concern in both the crypto and cybersecurity communities. Dubbed the “CopyPasta License Attack,” the flaw was uncovered by cybersecurity firm HiddenLayer and allows hackers to insert hidden Markdown instructions that spread malware via developer files such as README.md and LICENSE.txt. Critics, including developers and academics, warned that Coinbase’s rapid AI adoption could put users’ assets and core infrastructure at risk.
For more information, visit the source link: https://cryptonews.com/news/coinbases-x402-ai-payments-protocol-sees-10000-surge-in-activity/
