x402 Foundation established, AI agent payment agreements attract tech giants to enter the scene

The x402 Foundation was officially established on April 3, jointly by the open-source nonprofit Linux Foundation and Coinbase, with the goal of managing and standardizing self-executing payment agreements for AI agents (AI Agent) across the cryptocurrency and fiat currency rails. Google, major tech companies such as Microsoft, and fintech platforms such as Visa and Mastercard were listed as founding members, totaling 15 organizations.

Founding Member Structure and the Linux Foundation’s Governance Role

The founding members of the x402 Foundation span three major sectors: technology, payments, and blockchain:

Technology platforms: Google, Microsoft, Amazon Web Services (AWS), Cloudflare, Shopify

Payments and finance: Visa, Mastercard, American Express, Stripe

Blockchain and crypto: Circle, Base, Polygon Labs, Solana Foundation, Thirdweb, KakaoPay

Jim Zemlin, CEO of the Linux Foundation, said: “The network is built on open protocols.” He explained the core logic behind the x402 protocol’s open-source structure—that compared with launching under a company’s umbrella, a neutral nonprofit governance structure is more conducive to building industry trust and lowering the barriers for all parties to join the open ecosystem.

Industry Consensus on AI Agent Payments and the Protocol’s Positioning

The timing of the x402 Foundation’s launch coincides with a period when expectations in the industry for the demand for AI agents’ autonomous trading continued to heat up. Coinbase CEO Brian Armstrong said: “Soon, the number of AI agents doing online trading will exceed humans.” In a January commentary, Circle CEO Jeremy Allaire pointed out that within three to five years, “billions of AI agents” will trade on-chain; Binance former CEO Changpeng Zhao (CZ) also said that cryptocurrency is the “native currency for AI agents,” and that in the future, AI agents will autonomously handle a range of transactions, from buying airline tickets to paying bills.

At its core, the x402 protocol is an open payment standard that enables AI agents and network services to complete API access fee payments, digital data payments, and online service payments directly, without requiring manual intervention.

Trading Activity Data: A Clear Drop After the Peak

According to Dune Analytics data, trading activity for the x402 protocol reached a peak in November 2025: during the week of November 4 to 10, it recorded about 13.7 million transactions, and the following week stayed at nearly the peak level at about 13.66 million. However, after that, trading volume fell sharply, with the number of transactions per week shrinking to between 29,000 and 1.1 million—showing a significant drop from the peak.

Against this backdrop, the x402 Foundation was officially established, putting in place a standardized governance framework, which the industry views as a key move to re-attract developer resources and drive a rebound in protocol adoption numbers.

Frequently Asked Questions

What is the x402 Foundation, and what is its relationship with Coinbase?

The x402 Foundation was co-founded by the Linux Foundation and Coinbase, with the aim of managing the development of the x402 payments protocol in a neutral nonprofit manner. The x402 protocol was initially developed by Coinbase; after being handed over to the Linux Foundation, it is no longer controlled by any single company, helping to build broader industry trust and an adoption foundation.

What role does the x402 protocol play in AI agent payments?

x402 is an open payment standard that allows AI agents and network services to autonomously complete payments for API access fees, digital data, and online service fees without human intervention, while also supporting both cryptocurrency and fiat currency payment rails.

Why are tech giants like Google and Microsoft willing to join the x402 Foundation?

The scale of autonomous AI agent trading is widely expected to grow significantly over the next several years. Payment protocols built on open standards can prevent technical control from being concentrated in a single company, aligning with the long-term interests of large technology platforms. Meanwhile, the Linux Foundation’s neutral nonprofit positioning also lowers the political and commercial barriers for all parties to join the open ecosystem.