Coinbase has released x402, an open protocol that leverages the long-unused HTTP 402 status code to enable native web payments. By integrating Stellar's fast, low-cost settlement layer, x402 enables micropayments and direct machine-to-machine transactions without intermediaries.
Coinbase has unveiled x402, an open protocol that activates the dormant HTTP 402 "Payment Required" status code to make payments native to the web. When a server requires payment, it responds with 402 along with structured payment instructions, allowing clients to sign and submit payment transactions directly. The protocol integrates Stellar's settlement layer, which offers fast transactions (seconds), minimal fees (fractions of a cent), and support for USDC, making micropayments economically viable for the first time. This enables new use cases like per-API-call pricing, one-off article access, and real-time dataset metering—models abandoned decades ago due to prohibitive intermediary costs. Most significantly, x402 allows AI agents and autonomous software to transact directly with other services without pre-funded accounts or centralized payment platforms, embedding payment requirements directly into HTTP responses.