Coinbase has introduced a new payment system labeled X402, allowing cryptocurrency transactions to be processed over HTTP, specifically designed for AI applications and APIs. This development aims to enhance the integration of crypto payments in digital services, making it easier for developers to incorporate cryptocurrency transactions into their platforms.

Coinbase has introduced Payments MCP, a tool that allows AI agents like Claude and Gemini to access blockchain wallets and perform transactions using cryptocurrency. This initiative follows the launch of the x402 Foundation, aimed at standardizing AI payments and enhancing the integration of AI with decentralized finance.

Google has partnered with Coinbase and the Ethereum Foundation to enhance its open-source AI protocol, allowing AI applications to process payments using stablecoins. This initiative aims to merge AI with digital finance, responding to the rising adoption of stablecoins, which have seen significant growth in circulation this year.

Coinbase CEO Brian Armstrong explained his decision to fire engineers who did not prioritize the integration of artificial intelligence in their work. He emphasized the importance of adapting to technological advancements and the competitive landscape in the crypto industry. Armstrong believes that immediate action towards AI adoption is crucial for the company's future success.

Coinbase has introduced the x402 protocol, transforming the long-unused HTTP 402 status code into a payment layer that enables AI agents to autonomously process payments without human intervention. This innovation facilitates a more efficient system for digital transactions, allowing servers to request payments and clients, including AI agents, to respond using stablecoins like USDC. Other major companies like Visa and PayPal are also exploring similar autonomous payment solutions for AI-driven commerce.