X402: MACHINE-READABLE PAYMENTS

Summary from the TLDR Crypto newsletter

Coinbase's new x402 protocol introduces a standardized way for servers to signal that a payment is required using the long-unused HTTP 402 code. Unlike human-facing paywalls, x402 is machine-readable, enabling AI agents and other automated systems to detect and process payments directly. Instead of card details, agents can authorize stablecoin transfers via cryptographic signatures, which are then routed through a new entity called a “Facilitator” (similar to a merchant acquirer) to post payments on-chain. This unlocks a new use case for stablecoins as native internet money, allowing bots, APIs, and AI systems to autonomously pay for services, data, or content online.