Coinbase’s experimental x402 payments protocol, designed to allow AI agents and humans to pay directly in stablecoins over the Internet, has exploded in activity.
Key takeaways:
- Coinbase’s x402 protocol saw a 10,000% increase in transactions, processing nearly 500,000 payments in one week.
- The protocol revives the HTTP 402 “Payment Required” code to enable instant on-chain stablecoin payments.
- Growing developer interest has fueled x402-powered token launches.
According to data from Dune Analytics, the payment protocol has increased more than 10,000% in transactions over the last month.
Coinbase’s x402 revives HTTP 402 to enable instant on-chain payments
Originally introduced in May, x402 reinvents the long-unused HTTP 402 status code, “Payment Required,” as a native Internet payment layer.
It allows automatic and real-time transactions without credit cards or intermediaries.
Users, or AI agents, can request a service, receive a 402 payment notice, and send a signed stablecoin payment, which the system verifies on-chain.
From October 14 to 20, the protocol processed almost 500,000 transactions, an increase of 10,780% from the previous month.
Activity peaked on Friday with 239,505 transactions recorded, while Thursday saw a record transaction volume of $332,000.
The surge comes amid growing attention to “agent AI,” autonomous artificial intelligence systems capable of managing finances and resources, highlighted this week in a16z Crypto’s State of Cryptocurrencies 2025 report.
The firm projected that such agents could drive up to $30 trillion in autonomous transactions by 2030.
Coinbase developers Kevin Leffew and Lincoln Murr explained in August that x402 could enable a new financial layer for digital agents, allowing them to pay for computing, storage or even transportation without human intervention.
“They need atomic payments, programmable policies, and composable wallets,” they wrote. “Ethereum and stablecoins give them exactly that.”
Developers have also begun using the x402 framework to launch new tokens, sparking a wave of x402-powered memecoin projects, according to KuCoin Ventures.
The trend was strong enough for CoinGecko to add “x402 tokens” as a separate category, which has since grown to a $180 million market, an increase of 266% in just 24 hours.
Coinbase’s new protocol underscores a broader shift toward integrating artificial intelligence and on-chain finance, where machines can handle payments and data autonomously without third parties.
If adoption continues at the current pace, x402 could become the first functional bridge between AI systems and blockchain-based economic activity, a key step toward what Coinbase once called “fixing the Internet’s first mistake.”
Coinbase Faces Scrutiny After AI Encoding Tool Vulnerability Exposes Security Risks
Last month, an exploit in Cursor, the AI-powered coding assistant that all Coinbase engineers reportedly use, sparked widespread concern in both the crypto and cybersecurity communities.
The flaw, dubbed the “CopyPasta License Attack,” was revealed by cybersecurity firm HiddenLayer and allows hackers to insert hidden discount instructions that spread malware through developer files such as README.md and LICENSE.txt.
Once triggered, the attack can compromise entire code bases with minimal user action.
HiddenLayer demonstrated how the vulnerability could silently inject malicious code capable of stealing data, creating backdoors, or disrupting critical systems.
The company said similar risks exist in other AI coding tools such as Windsurf, Kiro and Aider. The disclosure came shortly after Coinbase CEO Brian Armstrong announced that AI now writes up to 40% of the company’s code, with plans to increase that figure to 50%.
Critics, including developers and academics, warned that Coinbase’s rapid deployment of AI could put user assets and core infrastructure at risk.
The post Coinbase’s AI x402 payments protocol experiences a 10,000% increase in activity appeared first on Criptonoticias.
