Machine Money Is Here: Coinbase, Cloudflare Kick Off x402 Standard for AI Commerce

TLDR:

• Coinbase and Cloudflare launch x402 Foundation to standardize AI-driven payments using HTTP 402 “Payment Required” status code.
• x402 protocol allows AI, APIs, and apps to pay for data, compute, and content instantly without subscriptions.
• Cloudflare supports x402 with deferred payments in Pay-Per-Crawl beta and integrates USDC for seamless machine-to-machine transactions.
• Foundation will fund ecosystem growth, ensure interoperability, and promote open adoption of x402 across industries

AI systems are learning to pay as they go. Coinbase and Cloudflare are teaming up to make that possible. The two companies are setting up the x402 Foundation, aimed at building a universal standard for machine-to-machine payments. 

This could change how AI, apps, and APIs exchange value online. Developers and businesses now have a shared roadmap to build payments directly into web interactions.

x402 Protocol Brings Payments into Web Interactions

Coinbase explained in its company blog that x402 uses the HTTP 402 “Payment Required” status code to embed payments into requests. This lets AI agents pay for access to data, APIs, and services instantly without subscription models slowing things down.

The x402 Foundation will manage governance of the standard and provide grants to encourage development. Its goal is to create a neutral system that works across industries and geographies, opening the door for faster adoption.

Early use cases are already running. Developers are testing pay-per-use AI models, real-time data feeds, and micropayments for content. Storage and compute services are also piloting pay-as-you-go setups, allowing automated billing on demand.

Cloudflare is adding support for x402 to its infrastructure, including a deferred payments option in its Pay-Per-Crawl beta. This allows developers to integrate payments for data access without complicated backend work.

Coinbase, Cloudflare, and Circle See Machine Payments Coming

Jeremy Allaire, CEO of Circle, shared that Cloudflare currently handles traffic for about 24 million websites and now supports x402 with built-in USDC payments. This is a major step toward machine-to-machine transactions at scale.

Coinbase said the foundation will focus on interoperability, making x402 function seamlessly across platforms. This avoids vendor lock-in and ensures businesses and AI platforms can adopt it without risk.

The companies said they want to remove friction from commerce. Legacy payment systems were designed for people and rely on manual processes and intermediaries. x402 solves that by using real-time stablecoin transactions that are secure and scalable.

Developers can expect tools, documentation, and resources from the Foundation soon. Coinbase said it sees this as laying the groundwork for autonomous agents that handle payments on their own.

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