Coinbase x402 Protocol Enables AI to Pay and Manage Crypto
Coinbase x402 protocol lets AI manage crypto wallets and make payments, but users must stay cautious about security risks.
Quick Take
Summary is AI generated, newsroom reviewed.
Coinbase’s x402 protocol enables AI agents to access and manage crypto wallets automatically.
AI can pay for services, tip creators, and handle transactions without human help.
Rapid adoption shows growth in AI-driven “agentic commerce” but raises security concerns.
Users and companies must implement safeguards to prevent fraud or mistakes.
As Cointelegraph reports, Coinbase has introduced the x402 protocol, a new system that allows AI agents to access and manage cryptocurrency wallets. This means AI can now make payments, pay for services and handle stablecoins without human intervention. However, many people are asking the question of is it safe?
⚡️ INSIGHT: AI agents are moving closer to controlling crypto wallets through Coinbase's Payments MCP, enabling them to access wallets and make payments via the x402 protocol.
— Cointelegraph (@Cointelegraph) October 28, 2025
But is it safe? pic.twitter.com/JqbyUzX9F6
What Is the x402 Protocol?
The x402 protocol was launched in May 2025. It is a web-based system that allows instant stablecoin payments over the internet. It uses the old HTTP 402 “Payment Required” code in a new way.
With x402, AI agents, apps and APIs can make transactions quickly and automatically. This is a huge step toward creating an automated online economy. In short, it allows digital money to move smoothly, without the traditional banking delays.
AI Agents Take Control
AI models like Claude, Gemini and Codex can now use x402 to manage crypto wallets. This allows them to pay for services, buy data or tip creators automatically.
For example, an AI agent could subscribe to a software service, pay for cloud computing, or reward content creators without human help. In other words, AI becomes an active participant in the digital economy and not just a tool.
The Rise of Agentic Commerce
Transactions using x402 have grown very fast. Coinbase reports that activity increased by 10,000% in just one month. This shows that AI-driven finance is becoming more common.
This trend, called agentic commerce, means AI can independently offer products and services online. Companies could run apps or services with minimal human involvement. However, it also changes the way we think about money and control in the digital world.
Security Concerns
However, with this new power comes risks. Giving AI access to crypto wallets creates potential vulnerabilities. For instance, hackers could try to trick AI agents into sending money to the wrong place.
Aaron Ratcliff, at blockchain firm Merkle Science, says safety depends on users. If AI systems are not well-protected, they can be manipulated. Therefore, strong safety measures are needed to protect funds and maintain trust.
The Future of AI in Crypto Finance
The x402 protocol shows how far AI can go in finance. It also highlights the importance of safety. As AI takes on more financial tasks, companies and users must make sure that their systems are safe .
In the future, AI could handle more payments, manage business transactions and make financial decisions automatically. Yet, balancing innovation with security is essential. Users need reliable safeguards to prevent mistakes or attacks.
In short, Coinbase’s x402 protocol is a huge step for AI in the crypto world. It offers speed and automation but comes with many risks, thus investors and users must stay alert. If handled carefully, it could completely change the way we use money online.
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