In a bold move that bridges the gap between artificial intelligence and cryptocurrency, Coinbase has launched Payments MCP, a cutting-edge protocol designed to empower AI agents to autonomously create wallets and execute stablecoin transactions. This innovative development promises to redefine how digital payments are processed, allowing AI systems to interact with blockchain technology seamlessly.
Launched on October 23, 2025, Payments MCP builds upon the Model Context Protocol framework and is integrated with Coinbase’s x402 payment standard, which utilizes the uncommonly used HTTP 402 status code to establish an open and accessible internet payment system. With this protocol, AI models such as Anthropic’s Claude, Google’s Gemini, OpenAI’s Codex, and Cherry Studio can now initiate transactions using simple natural language commands—eliminating the need for complex setups or API keys.
Coinbase’s head of engineering for its developer platform, Erik Reppel, emphasized that cryptocurrency stands as the only open digital payment standard that can be utilized by any program, highlighting the efficiency of AI agents operating through programmatic interfaces rather than traditional human-centric systems.
The process is remarkably user-friendly; individuals can create wallets merely by providing an email address, enabling immediate transactions in supported regions. This accessibility is set to democratize crypto engagement, making it easier than ever for users to dive into the world of blockchain.
How Payments MCP Functions
The x402 standard derives its name from the HTTP 402 status code, originally intended to signal “Payment Required” but largely underutilized over the years. Reppel notes that the quest for a universal internet payment standard has been ongoing since the 1990s, with notable figures like Marc Andreessen exploring similar concepts during the early days of online commerce.
Payments MCP operates locally on users’ devices, ensuring both speed and privacy. An intuitive interface allows users to browse services available for payment via the x402 Bazaar Explorer, while also providing options to set spending limits and manage transaction approvals through a dedicated configuration panel.
Technical Features and Future Prospects
With Payments MCP, AI agents gain the ability to create wallets, access onramps, and facilitate stablecoin transfers, all through natural language commands. However, it is noteworthy that support for ChatGPT is not yet included in this rollout, as the current transport method is incompatible with OpenAI’s streaming variant. Coinbase has plans to incorporate ChatGPT functionality in the future.
This protocol connects with Coinbase’s Base Layer 2 network, serving as a vital link between developer tools and broader mainstream application. This initiative aligns with Coinbase’s 2025 strategy, which aims to integrate AI infrastructure with cryptocurrency systems, building on previous efforts like USDC lending programs and collaborations with Google on stablecoin protocols.
Coinbase envisions stablecoins as an ideal solution for AI systems requiring fast and efficient transactions without human intervention. The Payments MCP protocol not only enables AI systems to retrieve paid data and manage transactions but also facilitates payments for computational resources, positioning AI agents as active participants in the global economy.
As Coinbase looks to the future, the company plans to expand support for additional AI models and developer tools, aiming to solidify its Base network as the go-to infrastructure for automated digital commerce. This innovative approach signals a transformative shift in the landscape of cryptocurrency payments, paving the way for more intelligent and autonomous financial transactions.
