Coinbase and Cloudflare have announced that their collaborative x402 Protocol achieved a record-breaking transaction volume, exceeding 156,492 transactions on October 25, 2023. This represents a 492.63% weekly volume surge, marking a significant advancement in agent-driven and machine-to-machine crypto payments.
The protocol leverages the previously unused HTTP 402 status code to facilitate efficient machine-to-machine transactions, with the x402 Foundation established to promote adoption. Key backers include industry giants Visa, Google, and AWS, underscoring confidence in its potential to reshape financial ecosystems. USDC serves as the primary settlement asset, integrated through Coinbase's Layer 2 Base infrastructure, highlighting a shift toward stablecoin usage in autonomous payments.
Regulatory interest is growing, with the Federal Reserve Bank of Atlanta evaluating the protocol for standardizing machine payments. Analysts project that machine-to-machine commerce could reach $700 billion by 2032, driven by this innovation. Quotes from leaders include Erik Reppel, Head of Engineering at Coinbase, stating, "Crypto is the only open, digital-native standard that any program can use. AI agents need smarter, more adaptable systems for secure payment processing," and Brian Armstrong, CEO of Coinbase, adding, "With the backing of industry giants, we are positioned to redefine how machines interact and transact in a seamless manner."
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