Coinbase has partnered with the Linux Foundation to launch the x402 Foundation, an industry group focused on developing an open standard for embedding payments directly into internet interactions.
The foundation will oversee the x402 protocol, which allows websites and APIs to request and receive payments during normal web traffic, following Coinbase’s decision to contribute the technology to neutral governance.
“The internet was built on open protocols,”
Said Linux Foundation executive director, Jim Zemlin.
The protocol revives the HTTP 402 “Payment Required” status code, enabling a native payment layer where users or AI agents can complete transactions seamlessly before accessing services or content.
Major companies including Google, Stripe, Visa, Mastercard, Shopify and Cloudflare are participating, signalling broad industry support for interoperable payment infrastructure.
The initiative reflects growing demand for “agentic commerce,” where AI systems transact autonomously, requiring open and programmable payment rails.
Coinbase said the move aims to create a more open, community-driven financial layer for the internet, supporting developers, merchants and AI-driven applications.