Coinbase expand x402 payments with powerful V2 upgrade for AI and multi-chain support

Developers building next-generation AI tools now have a more powerful way to handle payments with x402, as Coinbase pushes a major upgrade of the open-source protocol.

x402 V2 turns a simple HTTP idea into a full internet payment layer

About six months after its launch, the x402 protocol is rolling out x402 V2, transforming what began as a simple single-call payment system into a unified payment layer for the internet. According to Coinbase, the project has already processed over 100 million payments across APIs, apps, and AI agents in that short period.

“x402 launched in May 2025 with a simple idea: embed payments directly into HTTP using the long-dormant 402 status code,” engineers from Coinbase Developer Platform wrote in a blog post published on Thursday. However, they added that V2 evolves the specification based on “learnings from 6 months of x402 performing real-world payments.”

Over those six months, the protocol reportedly handled more than 100 million transactions across a variety of services, highlighting early developer interest in embedded HTTP payments. Moreover, the team positions V2 as a set of backend upgrades that streamline the creation of customizable payment flows while improving wallet and identity tooling.

Multi-chain by default and interoperable with legacy rails

One of the core design changes in x402 V2 is its move to a standardized way of identifying networks and assets. The developers say this creates “a single payment format that works across chains and with legacy payment rails,” effectively turning the system into a multi-chain payments layer.

This new format means the protocol becomes “multi-chain by default,” capable of handling tokens native to Base, Solana, and other blockchains without requiring custom integration logic for each asset. Moreover, the same interface can connect to legacy payment rails such as ACH and card networks, giving builders a bridge between traditional finance and on-chain value.

The announcement stresses that the goal is to make value “move across the internet as easily as information.” That said, the upgrade is not only about adding chains or fiat links; it also focuses on simplifying how developers define and manage payment interactions across different environments.

Dynamic routing, new identity tools, and richer paywalls

Perhaps the most visible feature for developers is the introduction of dynamic payTo routing. The new capability supports complex payment flows including usage-based billing, recurring subscriptions, prepaid balances, and multi-step transactions, all coordinated through a unified backend. This flexibility is designed to better match how modern apps monetize user activity.

With V2, builders can also plug in “lifecycle hooks” to trigger conditional tools, monitoring routines, or analytics at different points in a transaction. However, those hooks do more than logging; they allow teams to enforce custom business logic and risk checks across the entire flow, while also enabling more granular and configurable paywalls.

These enhancements aim to serve not just humans but also machines. The developers describe how the upgraded stack can support ai agent payments alongside app-driven and human-initiated transfers, with improved wallet and identity features intended to simplify authentication and authorization across actors.

Positioning x402 within the broader Coinbase strategy

The launch of x402 V2 follows the creation of the x402 Foundation in September, a joint effort by Coinbase to grow adoption of the standard. The foundation is meant to coordinate stewardship of the specification, encourage open-source contributions, and promote interoperability across implementations.

In parallel, Coinbase Developer Platform recently unveiled Payments MCP, a protocol that lets large language models such as Anthropic’s Claude and Google’s Gemini interact directly with blockchain wallets. Together with the x402 protocol ai payments stack, these initiatives signal Coinbase’s push to anchor on-chain payments inside AI-native workflows.

“V2 of the x402 protocol represents the next step in making value move across the internet as easily as information,” the engineers wrote. By expanding compatibility, simplifying the developer experience, and enabling new payment and identity models, they argue that the upgrade turns x402 into a more flexible layer for human, application, and agent-driven transactions.

As the internet shifts toward agentic computing and programmable money, the evolution of x402 V2 into a multi-chain, HTTP-native payment fabric could become a key primitive for both Web2 and Web3 services looking to embed seamless transaction flows.