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x402: The Hidden Payment Layer Driving the AI Economy of Coinbase
[Plain Language Introduction] This article delves into the x402 payment protocol launched by Coinbase—a technology that transforms the dormant HTTP 402 code into the AI economic financial track. This protocol operates on the Base chain, allowing for instant, gas-free micro-payments of USDC between machines and AI agents, addressing the pain point of "machines being unable to open accounts."
In October 2025, the trading volume of x402 surged over 10,000%, and the ecosystem rapidly exploded. Combined with smart layers like Virtuals Protocol, x402 is driving the emergence of a "proxy economy" where machines trade autonomously. Despite facing regulatory challenges, institutions like a16z believe this could be a future pillar of the $30 trillion AI economy.
For details, please see: