Cloudflare Inc. (NYSE: NET) saw its stock surge over 6% to close at $225.48 on Wednesday following reports that major cryptocurrency firms are vying to issue the company's upcoming stablecoin. According to sources, Coinbase and crypto infrastructure provider Zerohash are leading contenders to bring the new digital asset, dubbed "NET Dollar," to market later this year.
The initiative aims to create a US dollar-pegged token specifically designed for the "agentic web"—a next-generation internet where autonomous AI agents independently browse, negotiate, and settle payments without constant human oversight. By embedding stablecoin functionality into web infrastructure, Cloudflare seeks to enable efficient micropayments for AI-driven activities like content access, data processing, and automated services.
The development builds on Cloudflare's existing strategic collaboration with Coinbase. The two organizations co-founded the x402 Foundation last year to advance an open standard reviving the HTTP 402 "Payment Required" status code, allowing websites to request and receive instant digital payments natively. Layering a purpose-built stablecoin on this framework aims to create a web-native payment ecosystem for the AI era.
Coinbase has prioritized supporting AI agent infrastructure, shifting focus from volatile brokerage revenues to providing underlying commerce rails for autonomous systems. Zerohash brings regulatory expertise and technical know-how for compliant stablecoin issuance across jurisdictions.
Analysts suggest the competition could accelerate development while ensuring the token meets stringent reserve, transparency, and audit standards demanded by institutional users. If successful, NET Dollar could extend stablecoin utility beyond trading into mainstream digital commerce, normalizing instant, borderless payments for both humans and machines.
The news overshadowed other Cloudflare developments, including a deepened partnership with SentinelOne for AI-driven security integration and the release of its 2026 Threat Intelligence Report. Notably, CEO Matthew Prince sold $30.5 million in stock under a pre-arranged Rule 10b5-1 plan during the same period, though analyst sentiment remains positive with price targets reaching $265 following strong Q4 2025 results showing 34% year-over-year revenue growth.
