- Coinbase expands x402 protocol with AI-driven micropayments for seamless digital commerce.
- Acqui-hire of Sensible co-founders boosts Coinbase’s DeFi and on-chain consumer strategy.
- Coinbase’s aggressive acquisitions position it at the center of the evolving Web3 economy.
Coinbase (COIN), the U.S.-listed cryptocurrency exchange, is taking bold steps toward realizing its vision of becoming an “everything exchange.” The company is merging AI-driven automation with advanced on-chain infrastructure. This integration promises to redefine how crypto is used and traded in a future powered by smart agents and seamless payments.
Earlier this year, Coinbase introduced x402, an open-source payment protocol designed for stablecoin-based micropayments. This protocol allows instant payments on any website. Now, Coinbase is expanding the x402 ecosystem by adding a discovery layer for AI agents, dubbed x402 Bazaar. This layer functions like a “Google for agents,” opening new pathways for autonomous transactions and enhancing the utility of AI in digital commerce.
AI Agents Shaping the Future
The key to this innovation lies in agentic commerce. This term refers to AI agents that make purchasing decisions based on preferences set by humans. These agents would engage in transactions far more frequently than human users, according to Coinbase’s head of engineering, Erik Reppel. He calls this new model a “pay-per-crawl” system, where AI agents pay for access to the data needed to improve their decision-making.
Reppel emphasized that x402 is a perfect fit for these use cases. It provides AI agents with the necessary access to data, whether it’s pulling market information, commissioning AI-generated designs, or subscribing to live feeds. The potential for such automated workflows is vast, and x402 Bazaar already includes APIs like Prixe, which helps agents generate real-time financial reports.
As more services are added, the possibilities would grow exponentially. Reppel stated that nearly any digital good or service could be paid for using x402. This lays the foundation for the future of agent-driven commerce, where smart agents carry out complex tasks autonomously in exchange for small, frequent payments.
Coinbase Boost for DeFi
The ambitious project by Coinbase goes more than the technical achievement of x402. Along the same line, the firm has made an acqui-hire of Jacob Frantz and Zak Salmon, who are the co-founders of the yield-earning platform Sensible. This deal, announced on September 9, would anchor the experience of designing decentralized finance (DeFi) products with Coinbase.
Frantz and Salmon are to spearhead the on-chain consumer strategy at Coinbase. Their experience in developing highly usable DeFi applications would prove critical as Coinbase makes strategies to bring decentralized finance to the reach of a common user.
This is a strategic purchase to support the overall aim of Coinbase as an everything exchange. The firm intends to offer a single place where people can conduct trades, borrow, stake, and spend digital assets without hassle. Frantz and Salmon would contribute to the vision, leveraging their experience of income-producing DeFi solutions combining staking incentives and decentralized protocols.
Related: Coinbase Tightens Hiring Rules After North Korean Hacker Threats
The 2025 acquisition spree is deemed as the continuous attempt of Coinbase to dominate the Web3 space. Its infrastructure is further enhanced by recent leverage on the purchase of teams of Deribit, Spindl and Iron fish. These moves combined ensure that Coinbase is placed as the heart of the future Web3 economy.
Still, these aggressive growths appear during a difficult moment in Coinbase. The exchange reported a 26% decrease in revenue and a 39% drop in transaction revenue. Spot trading volumes also fell by more than 30% in its second-quarter results. Also, Coinbase announced that it experienced a major data breach, which made the company spend $400 million.
Through these challenges, Coinbase is determined to be the comprehensive place for digital assets. On-chain infrastructure and AI payments place Coinbase in the center of Web3. With smart agents and flawless transactions, Coinbase intends to be ahead of the pack to form the future of digital finance.
