What is Coinbase’s x402 Protocol?

Coinbase has introduced the x402 protocol, an open-source standard designed to enable AI agents to conduct financial transactions autonomously. Built upon the long-existing but underutilized HTTP 402 “Payment Required” status code, this protocol establishes a standardized way for web services to request payments and for software agents to fulfill them using digital assets. In the traditional web, payments often require human intervention, credit cards, and manual KYC processes, which act as barriers for AI bots. The x402 protocol solves this by allowing servers to provide payment details directly within the HTTP response headers. This enables machine-to-machine commerce, where AI agents can pay for API access, data, or computing power in real-time using cryptocurrencies. By facilitating these friction-less micro-payments, Coinbase aims to provide the financial infrastructure for the “Agentic Web,” a future where autonomous software programs can independently buy and sell services globally.

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