Major technology companies including Google, Microsoft and Amazon Web Services have thrown their support behind the newly launched x402 Foundation, an initiative aimed at developing open standards for AI-driven payments across crypto and traditional financial systems.

The foundation was introduced by the Linux Foundation in collaboration with Coinbase, which originally created the x402 protocol. The move places the protocol under a neutral, non-profit structure to encourage broader industry participation.

OPEN-SOURCE STRUCTURE DESIGNED TO DRIVE ADOPTION

The x402 protocol is designed as an open payment standard that allows AI agents and web services to autonomously pay for APIs, data access and digital services.

By operating under the Linux Foundation, the protocol is not controlled by any single company. This structure is intended to build trust among developers and enterprises while accelerating adoption across industries.

“The internet was built on open protocols,” said Jim Zemlin, CEO of the Linux Foundation, highlighting the importance of transparency and collaboration in scaling emerging technologies.

According to Coinbase, placing x402 within a neutral organization increases its chances of attracting long-term support from both Big Tech firms and the broader developer ecosystem.

WIDE INDUSTRY SUPPORT SIGNALS GROWING INTEREST IN AI PAYMENTS

In addition to Google, Microsoft and Amazon Web Services, several global companies have expressed early support for the initiative. These include American Express, Mastercard, Visa, Cloudflare, Shopify, Stripe and Circle, along with blockchain-focused organizations such as Base, Polygon Labs, Solana Foundation and Thirdweb.

Source: Coinbase

The growing list of participants reflects a wider industry belief that AI agents could soon become major users of digital payment systems.

Coinbase CEO Brian Armstrong recently suggested that AI agents may outnumber humans in online transactions in the near future. Similar views have been echoed by Circle CEO Jeremy Allaire, who has projected that billions of AI agents could operate on blockchain networks within the next few years.

Former Binance CEO Changpeng Zhao has also described cryptocurrency as a natural payment layer for AI-driven systems, which could handle tasks such as subscriptions, ticket purchases and service payments without relying on traditional financial tools.

X402 TRANSACTION ACTIVITY DECLINES AFTER INITIAL SURGE

Despite strong industry backing, recent data shows that activity on the x402 protocol has slowed after an early surge.

According to Dune Analytics, weekly transaction volume peaked at around 13.7 million transactions in early November, with similarly high activity the following week.

Weekly transactions via the x402 protocol since May 2025. Source: Dune Analytics

However, usage has since declined significantly in 2026, with weekly transactions ranging between 29,000 and 1.1 million.

The drop suggests that while interest in AI-powered payment infrastructure remains high, real-world adoption is still evolving as the technology matures.