Coinbase and Cloudflare have co-developed x402, an open payment standard launching this November 2025, designed for seamless digital transactions, expected to revolutionize online commerce.
Introducing x402 streamlines AI-driven payments, potentially reshaping the digital economy with real-time transactions, significant for developers and businesses leveraging the USD Coin.
Introduction of x402 Protocol
Coinbase and Cloudflare have collaborated to launch x402, a new payment standard aimed at facilitating frictionless digital transactions. The protocol is designed to make use of the reserved HTTP 402 ‘Payment Required’ status code. Matthew Prince, Co-founder and CEO of Cloudflare stated, "Coinbase deserves immense credit for starting the work on the x402 protocol and we're excited to partner with them on our shared vision for a neutral foundation. The Internet’s core protocols have always been driven by independent governance, which is why we’re proud to work with Coinbase to ensure x402 has the same path, given its likelihood to become a core protocol for agentic commerce." The x402 Foundation was established to guide the protocol's development.
Impact on Digital Payments
The introduction of x402 is expected to impact digital payment processing, particularly benefiting industries reliant on AI-driven technologies. This move could revolutionize how online transactions are processed globally. With a focus on stablecoin transactions, x402 utilizes USDC as the primary medium, aiming to provide seamless payment experiences. This initiative introduces a comprehensive change in contemporary payment infrastructures.
Technical Specifications
Financially, the protocol does not involve an ICO or new token issuance, remaining chain-agnostic. The reliance on existing stablecoins like USDC highlights its pragmatic approach to blockchain integration. Experts suggest x402 could significantly influence how value is exchanged online, by leveraging existing public blockchains for zero-fee settlements. Data indicates potential for a paradigm shift in internet commerce protocols. More details about the project can be found in the X402 whitepaper.