Coinbase Launches Enhanced x402 V2 to Advance AI-Driven Crypto Payments

Coinbase (COIN) has introduced the newest version of its stablecoin-powered payments protocol, x402 V2, designed to streamline how AI agents interact with autonomous payment systems. Announced Thursday, the upgrade makes it easier for developers to extend, integrate, and customize the technology, marking a major step in Coinbase’s strategy to support AI-driven financial automation.

According to Coinbase, x402 V2 shifts the protocol from simply demonstrating what it can do to enabling seamless integration with a wide range of existing services. The updated system offers a modular architecture that lets developers combine payment functionalities, securely access wallets, and add customized features without complexity. This cleaner and more flexible design aims to support rapid innovation in AI-native payment applications.

Earlier this year, Coinbase released the original x402 protocol as an open-source solution and later introduced x402 Bazaar, a discovery layer for AI agents often compared to a “Google for agents.” The latest V2 upgrade significantly expands the protocol’s capabilities. Coinbase noted that x402 V2 now supports wallet-based identity, allowing users and agents to avoid repetitive repayment steps. It also introduces automatic API discovery, dynamic payment recipients, and compatibility with more blockchains and fiat systems through CAIP interoperability standards. The new version includes a fully modular SDK, enabling developers to build on custom networks and payment schemes with greater ease.

Coinbase emphasized that these improvements make x402 “cleaner, more extensible, and future-proof,” supporting unified payment workflows for both human users and AI agents. As AI continues to reshape digital finance, the exchange aims to position x402 as a foundational tool for scalable, autonomous payment infrastructure.