The push to modernize online payments is gaining momentum as companies explore new standards designed for a digital economy increasingly influenced by artificial intelligence (AI). Coinbase (Nasdaq: COIN) announced on Sept. 23 that it is joining with Cloudflare to establish the x402 Foundation, which will manage governance, growth, and interoperability of the x402 protocol. By utilizing the HTTP “402 Payment Required” status code, the protocol embeds payments into web activity, enabling AI agents, businesses, and applications to transfer value within everyday internet interactions.

Coinbase described the project’s mission:

This new initiative is designed to establish x402 as the universal standard for AI-driven payments.

“By creating a neutral, open standard, we aim to unlock the full potential of agentic commerce, enabling seamless, autonomous transactions between AI agents, businesses, and users,” the company further stated. “This innovation eliminates the friction of traditional payment systems, paving the way for a new era of automated, scalable commerce.”

Practical uses are already emerging, from pay-per-request access to AI services and real-time analytics to tipping creators and paying for data storage. Cloudflare will bring its infrastructure capabilities to the collaboration, including a deferred payments feature tied to its pay-per-crawl beta.

Coinbase set out a long-term vision for the effort:

As momentum accelerates, x402 is poised to become the backbone of agent-driven economies, transforming how value is exchanged across the internet.

“However, for x402 to reach its full potential, it must be an open, neutral standard. The x402 Foundation ensures transparent governance, fostering collaboration, and inviting contributions from across the ecosystem,” the crypto firm noted. Foundation membership is expected to expand as developers, e-commerce platforms, and enterprises adopt x402, with the broader goal of building a programmable economy capable of serving both people and AI agents.

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