TLDR
- Cloudflare unveils NET Dollar, a USD-backed stablecoin for AI agent transactions
- Token designed to enable instant payments for autonomous software programs
- Company shifts from traditional ad-based internet model to pay-per-use commerce
- Stablecoin market approaches $300 billion with new competitors joining
- Launch date remains unannounced but expected soon
Cloudflare announced its entry into the cryptocurrency market with NET Dollar, a new US dollar-backed stablecoin designed specifically for artificial intelligence payments. The cloud infrastructure giant revealed the project Thursday as part of its vision for the future internet economy.
The NET Dollar will power transactions between AI agents, autonomous software programs that handle tasks like flight bookings, shopping, and schedule management. These digital assistants need seamless payment capabilities to function independently across online platforms.
Matthew Prince, Cloudflare’s co-founder and CEO, described the move as fundamental shift in internet economics. Traditional models relied on advertising revenue and slow bank transfers for decades. The company believes microtransactions and fractional payments will drive the next generation of web commerce.
Technical Features and Global Reach
The NET Dollar offers full US dollar backing with real-time settlement capabilities. Global interoperability allows programmable transactions between AI systems and various online services worldwide.
Cloudflare’s existing network spans 120 countries, providing the infrastructure foundation for widespread adoption. The company delivers content delivery services, security protection, and developer tools across this global footprint.
The stablecoin supports new monetization models for content creators and application developers. AI companies can compensate data providers directly through automated payment systems, eliminating intermediaries and reducing transaction costs.
Competitive Landscape and Market Position
NET Dollar enters a rapidly expanding stablecoin ecosystem valued at nearly $300 billion. Market leaders Tether (USDT) and Circle (USDC) control $173 billion and $73.7 billion respectively, but new entrants continue challenging their dominance.
Recent launches include South Korea’s KRW1 stablecoin and China’s AxCNH offshore yuan token. Hyperliquid introduced USDH while Tether launched USAT for US compliance requirements. This competition demonstrates growing demand for diverse digital payment solutions.
Industry analysts project stablecoin transaction volumes could reach $1 trillion by 2030. Institutional adoption, foreign exchange settlement, and cross-border payments drive this projected growth according to trading firm Keyrock.
Tech giants increasingly explore cryptocurrency integration. Google recently partnered with Coinbase on AI payment protocols, while Galaxy Digital predicts AI agents will become primary stablecoin users for routine purchases.
Cloudflare contributes to emerging payment standards including the Agent Payments Protocol and x402. These initiatives aim to simplify online money transfers and create infrastructure for autonomous economic systems.
The company has not disclosed NET Dollar’s launch timeline, stating availability will come soon.
