TLDR
- Coinbase introduced Payments MCP on October 23, 2025, enabling AI agents to autonomously manage crypto wallets and execute stablecoin transactions
- The protocol integrates with Claude, Gemini, Codex, and Cherry Studio using simple natural language commands without requiring technical setup
- Built on the x402 payment standard using the unused HTTP 402 code to create an open payment system for machines
- Users can create wallets with just an email, set transaction limits, and control approvals through a local security interface
- ChatGPT compatibility is in development but currently unavailable due to technical limitations with OpenAI’s streaming architecture
Coinbase rolled out a protocol on October 23, 2025 that lets artificial intelligence agents conduct cryptocurrency transactions independently. The new system enables AI to create wallets and transfer stablecoins without human intervention.
Payments MCP represents the exchange’s latest effort to merge AI capabilities with blockchain technology. The protocol connects directly to multiple AI platforms through a standardized framework.
The system currently supports Anthropic’s Claude, Google’s Gemini, OpenAI’s Codex, and Cherry Studio. These AI agents can now handle wallet creation, fund deposits, and stablecoin payments using conversational commands.
Erik Reppel leads engineering for Coinbase’s developer platform. He explained to Decrypt that cryptocurrency provides the only open digital payment method accessible to any program. AI systems work better with programmatic tools than interfaces built for people.
The protocol eliminates the need for API keys or technical configuration. Anyone can set up a wallet using just an email address and start making transactions in eligible countries right away.
Understanding the x402 Framework
Coinbase built Payments MCP on its x402 payment standard. The name references HTTP status code 402, originally designated for “Payment Required” but never widely adopted.
Reppel traced the concept back to the 1990s when developers first attempted internet-native payment systems. Marc Andreessen’s team at Netscape explored similar ideas while working with early credit card technology.
HTTPS made online payments more secure, but no universal standard emerged. Each merchant still processes card data differently, even when checkout forms look similar.
The protocol operates locally on user devices to protect privacy and maintain speed. Users can browse available services through the x402 Bazaar Explorer and pay for them directly within the application.
A built-in configuration panel lets users establish spending caps and approve transactions. The system gives users control over how AI agents access and use their funds.
Technical Architecture and Future Plans
Payments MCP grants AI agents access to essential blockchain functions including wallet generation, funding mechanisms, and stablecoin transfers. The system processes all payments through natural language instructions.
OpenAI’s ChatGPT is absent from the initial launch. The protocol’s transport mechanism conflicts with ChatGPT’s current streaming technology. Coinbase confirmed plans to add ChatGPT compatibility later.
The protocol connects to Coinbase’s Base Layer 2 blockchain network. The company positions this as infrastructure connecting developer resources with mainstream users.
This launch fits within Coinbase’s broader 2025 roadmap linking AI systems to crypto payment rails. Previous projects included USDC lending services and Google partnerships for stablecoin protocols.
The exchange describes stablecoins as optimal for AI payments due to their transaction speed and programmable nature. These features allow automated systems to operate without manual oversight.
AI agents can now purchase data access, handle financial transactions, and pay for computing power independently. Coinbase frames this as enabling machines to participate actively in economic systems.
The company will expand support to additional AI models and development tools in upcoming months. Coinbase wants its platform and Base network to become foundational infrastructure for automated commerce.
The protocol launched with integrated onramp services and guest checkout options. Users in supported regions can fund wallets and begin transacting within minutes of setup.
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