- The x402 Foundation launched on Thursday by the Linux Foundation to govern an AI payment protocol, backed by tech giants like Google, Microsoft, Amazon Web Services, and payment firms like Amex, Mastercard, and VISA.
- Transaction activity for the x402 protocol peaked last November at 13.7 million weekly transactions but has since crashed to as low as 29,000.
- Industry leaders, including Coinbase CEO Brian Armstrong, believe AI agents will soon dominate online transactions, necessitating open protocols for crypto and fiat payments.
On Thursday, the Linux Foundation launched the x402 Foundation to standardize the x402 protocol for agentic AI payments on crypto and fiat rails, with founding members including Google, Microsoft, and Amazon Web Services. Other key backers are payment giants American Express, Mastercard, and Visa, alongside Coinbase, Shopify, and Polygon Labs. By putting the protocol in a “neutral, nonprofit home,” said Coinbase, the foundation aims to attract broader support from developers and tech firms.
Linux Foundation CEO Jim Zemlin explained the move by stating, “The internet was built on open protocols.” This launch follows a broad industry belief that AI agents will soon be the dominant users of blockchain payments. Coinbase CEO Brian Armstrong said, “There will be more AI agents transacting online than humans very soon,” echoing similar 2026 predictions from other executives.
The x402 protocol itself is an open standard enabling AI agents to autonomously pay for API access and digital services. However, its transaction activity has seen dramatic volatility, according to data. Weekly transactions peaked at 13.7 million between November 4-10 last year but fell sharply afterwards. Consequently, weekly figures have since fluctuated between 29,000 and 1.1 million transactions, indicating a significant downturn.
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