Coinbase’s AI-focused payment protocol, x402, is transitioning to an open, standardized infrastructure under the Linux Foundation, a non-profit organization dedicated to open-source software development. This move aims to establish a community-governed ecosystem for high-frequency, microtransactions that traditional financial systems struggle to process efficiently.

x402 Foundation Launched with Industry Support

An initial governing body, the x402 Foundation, has been formed with participation from internet services firm Cloudflare and payments giant Stripe. A wide range of other prominent companies are also offering support for the project.

Key Backers of the x402 Protocol

Initial intent and support have been expressed by Amazon Web Services, American Express, Ant International, Visa, and Microsoft. Additional members of the foundation include Adyen, Base, Circle, Fiserv Merchant Solutions, Google, KakaoPay, Mastercard, Merit Systems, Polygon Labs, PPRO, Sierra, Shopify, Solana Foundation, Thirdweb, and Visa.

Addressing the Rise of Agentic Commerce

The growing interest in x402 coincides with the expansion of AI-driven commerce, particularly agentic payments. These payments are executed autonomously by AI agents and are a key focus of the protocol. x402 is specifically designed to handle transactions involving fractions of a cent at high frequency, a capability that traditional credit card networks find challenging.

“The internet was built on open protocols,” stated Jim Zemlin, CEO of the Linux Foundation. “The x402 Foundation will create an open, community-governed home to develop these capabilities in the open, ensuring they evolve with transparency, interoperability, and broad participation across the ecosystem.”

Google's Perspective on Open Infrastructure

James Tromans, Managing Director, Web3 and Digital Assets at Google Cloud, emphasized the need for open cloud infrastructure to support agentic commerce. “The shift toward agentic commerce requires cloud infrastructure that is as open as the protocols it supports,” Tromans said. “By joining the x402 Foundation, Google is reinforcing its commitment to interoperable standards that enable secure, AI-driven transactions across platforms.”

Recent reports also highlight the importance of privacy in blockchain technology, with a CoinDesk Research report mapping five privacy approaches and examining their durability as AI capabilities improve. Separately, Drift, a Solana-based DeFi platform, is currently investigating “unusual activity” and has advised users to refrain from depositing funds.