Coinbase CEO Brian Armstrong believes the proliferation of AI agents will drive new demand for crypto payments. This is because such software can autonomously access data, computing power, and online services, but it struggles to integrate with traditional banking systems. Coinbase is building payment tools around this scenario, hoping to enable AI systems to hold wallets, access services, and automatically complete settlements.
AI-powered agents struggle with bank accounts.
Bank accounts typically require the account holder to submit proof of identity, complete compliance reviews, and maintain control of the account. AI agents, being software, lack the ability to possess passports, legal person status, or sign traditional banking documents, making it difficult for them to directly utilize existing banking infrastructure.
Armstrong believes that crypto wallets can fill this gap. Developers can configure wallets for AI agents, allowing them to pay for data requests, cloud computing, storage, or API services according to preset rules. Compared to bank transfers, these payments do not require human approval and are faster.
In addition, AI agents need to frequently process small payments. For example, a single data retrieval might only cost a few cents. Such amounts are inefficient in the traditional banking system, while on-chain payments are more suitable for being completed automatically by programs.
x402 Processor Payment
In May 2025, Coinbase launched the x402 payment protocol. Based on the HTTP 402 "Payment Required" status code, this protocol transforms a long-dormant network standard into a payment tool for transactions between websites, applications, and automated software.
When the AI agent accesses paid content or calls API services, x402 can automatically deduct the fees. The protocol currently primarily uses USDC on the Base network for settlement to reduce transaction fees and maintain price stability.
- Approximately nine months after its launch, x402 has processed over 100 million transactions.
- Payments totaled $24.24 million in the past 30 days.
- In May 2026, it processed 3.1 million transactions, totaling approximately $1.2 million.
Base and USDC extended uses
Coinbase considers Base a crucial network for this "proxy finance" model. The article states that currently over 90% of on-chain proxy stablecoin payments occur on Base. Compared to some larger blockchain networks, Base offers lower fees and faster settlement speeds.
In this scenario, USDC serves as a relatively stable unit of account for AI agents. This allows agents to more easily control their budgets when procuring services and to operate within the spending limits set by the developers.
This expands Base's on-chain demand beyond transaction activity and adds a new use case for USDC: automated commercial payments. However, x402's current transaction volume is still far smaller than that of global bank cards and banking networks.
Coinbase continues to expand its tools
In June 2026, Coinbase launched Coinbase for Agents, providing developers with a suite of tools to enable AI systems to manage transactions, spending, and funds within set rules. Businesses can limit the spending limits of their agents and control the services they can access.
The x402 Foundation currently operates within the Linux Foundation ecosystem, with Coinbase, Cloudflare, and Stripe providing support. The market will next focus on x402's transaction growth, enterprise adoption, and whether this model will expand from Base and USDC to more networks and assets.
