Coinbase’s x402 AI Payments Protocol Sees 10,000% Surge in Activity

Coinbase’s experimental x402 payments protocol, designed to let AI agents and humans pay directly in stablecoins over the internet, has exploded in ￰1￱ Takeaways: Coinbase’s x402 protocol saw a 10,000% surge in transactions, processing nearly 500,000 payments in one ￰2￱ protocol revives the HTTP 402 “Payment Required” code to enable instant on-chain stablecoin ￰3￱ developer interest has fueled x402-powered token ￰4￱ to data from Dune Analytics , the payments protocol has surged more than 10,000% in transactions over the past month. Coinbase’s x402 Revives HTTP 402 to Enable Instant On-Chain Payments Originally introduced in May, x402 reimagines the long-unused HTTP 402 status code, “Payment Required,” as a native internet payment ￰5￱ enables automatic, real-time transactions without credit cards or intermediaries.

Users, or AI agents, can request a service, receive a 402 payment prompt, and send a signed stablecoin payment, which the system verifies ￰6￱ Oct. 14 to 20, the protocol processed nearly 500,000 transactions, a 10,780% increase from the previous ￰7￱ peaked on Friday with 239,505 transactions recorded, while Thursday saw a record $332,000 in transaction ￰8￱ sudden spike comes amid growing attention to “agentic AI,” autonomous artificial intelligence systems capable of managing finances and resources, highlighted this week in a16z Crypto’s 2025 State of Crypto ￰9￱ firm projected that such agents could power up to $30 trillion in autonomous transactions by 2030.

x402 growing like crazy link in thread ￰0￱ — Brian Armstrong (@brian_armstrong) October 24, 2025 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 compute, 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 x402’s framework to launch new tokens, sparking a wave of x402-powered memecoin projects, according to KuCoin ￰10￱ trend was strong enough for CoinGecko to add “x402 tokens” as a separate category, which has since swelled into a $180 million market, up 266% in just 24 hours.

Coinbase’s new protocol underscores a larger shift toward integrating AI and on-chain finance, where machines can autonomously handle payments and data without third ￰11￱ adoption continues at its current pace, x402 could become the first working 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 Coding Tool Vulnerability Exposes Security Risks Last month, an exploit in Cursor, the AI-powered coding assistant reportedly used by all Coinbase engineers, sparked widespread concern in both the crypto and cybersecurity ￰12￱ flaw, dubbed the “CopyPasta License Attack,” was revealed by cybersecurity firm HiddenLayer and allows hackers to insert hidden markdown instructions that spread malware through developer files such as ￰13￱ and ￰14￱ triggered, the attack can compromise entire codebases with minimal user ￰15￱ demonstrated how the vulnerability could silently inject malicious code capable of stealing data, creating backdoors, or altering critical ￰16￱ firm said similar risks exist in other AI coding tools like Windsurf, Kiro, and ￰17￱ disclosure came shortly after Coinbase CEO Brian Armstrong announced that AI now writes up to 40% of the company’s code, with plans to raise that figure to 50%.

Critics, including developers and academics, warned that Coinbase’s rapid AI rollout could endanger user assets and core infrastructure.