- The protocol supports multiple payment types, such as credit and debit cards, real-time bank transfers, and stablecoins
- It’s being developed alongside many companies, including Coinbase and Ethereum Foundation, and other non-crypto firms
- The system uses special digital contracts called “Mandates” and “Verifiable Credentials” to make sure a user gives clear permission for what an AI agent is doing on their behalf
Google announced a new open-source protocol called Agent Payments Protocol (AP2) to enable AI agents (apps, bots, and assistants) to conduct payments on behalf of users in a secure and verifiable way.
The protocol supports multiple payment types, such as credit and debit cards, real-time bank transfers, and stablecoins.
AP2 is being developed in collaboration with a consortium of partners, including leading crypto companies like Coinbase and the Ethereum Foundation. Also, major traditional financial and tech firms are involved, such as Salesforce, American Express, and Etsy.
How AP2 Works
The system uses special digital contracts called “Mandates” and “Verifiable Credentials” to make sure a user gives clear permission for what an AI agent is doing on their behalf. The goal here is to help with accountability and fraud prevention, in addition to ensuring that the AI is actually doing what the user wants.
By making the framework open-source, Google hopes to encourage adoption across industries while giving regulators and auditors a transparent standard to evaluate.
Related: Google to Launch Its Own Layer 1 Blockchain for Payments; Takes Aim At Ripple, Stripe, and Circle
Why this matters for crypto
Supporting stablecoins in AP2 means digital assets pegged to fiat (for example, USDC) are being taken seriously as payment rails for AI-driven commerce and not just as speculative assets. This could very well open the door for AI services, decentralized apps, and merchant platforms to use stablecoins in payments natively.
As commerce shifts toward AI agents (personal shopping assistants, recommendation systems, and so on), having a standard means of payment can be more seamless, secure, and auditable. AI agents will be able to transact in a way that both users and merchants can trust.
For crypto companies and projects, having more standardized payment flows means fewer surprises in compliance. As for stablecoins, the total amount in circulation has grown a lot in 2025, from about $205 billion at the start of the year to $289 billion. This increase is a big indicator that there is genuine interest and practical use for them.
Related: Google Adds Prompt Guide to New “Nano Banana” AI Image Model
Other big tech and payment firms are similarly exploring stablecoin or tokenized asset integration. The likes of PayPal, Mastercard, and others have long been investigating stablecoin usage, tokenized money-market funds, or blockchain rails. It’s likely that the move from Google will add more weight to the ongoing trend.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/google-coinbase-crypto-payments-ai-protocol/
