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The article discusses x402, an open payment protocol by Coinbase that enables instant stablecoin transactions using the previously unused HTTP 402 code. This protocol allows websites, APIs, and AI agents to process payments without intermediaries, making microtransactions feasible and efficient.
This article analyzes the x402 payment protocol, revealing its success in processing 63 million transactions worth $7.5 million in USDC in December 2025. It highlights the advantages of micropayments and stablecoins over traditional payment methods, while also outlining challenges like agent identity and dispute resolution.