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Coinbase-Initiated x402 Foundation Sets Out to Build a Universal Open Payment Standard for the Web

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR:

  • Coinbase initiated the x402 Foundation under the Linux Foundation alongside Cloudflare and Stripe as co-founders.
  • Over 20 founding members joined, including Google, Microsoft, Visa, Mastercard, AWS, Circle, and Shopify.
  • The x402 protocol supports both fiat and crypto rails across multiple blockchains and payment networks globally.
  • AI agents can now make automated payments without manual authorization using the open x402 payment standard.

x402 Foundation has officially launched as a non-profit organization under the Linux Foundation. Coinbase initiated the effort alongside Cloudflare, Stripe, and a broad group of industry leaders.

The foundation aims to establish the x402 protocol as a universal open payment standard for the internet. Over 20 founding members have joined, including Google, AWS, Microsoft, Visa, Mastercard, Circle, and Shopify. Their collective goal is to make sending value online as seamless as sending an email.

An Open Standard Built for the Modern Internet

The internet runs on open protocols, with HTTP handling data and SMTP managing email communication. However, payments have long remained fragmented and proprietary across the web.

The x402 protocol changes this by embedding payments directly into web-based interactions. AI agents, apps, and APIs can therefore send and receive value as easily as they exchange data.

AI agents are increasingly taking on tasks for users without constant human oversight. These agents need a reliable way to pay for services without manual authorization every single time.

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The x402 protocol enables fully automated payment flows across different platforms and services. This removes a key barrier for developers building tools that depend on machine-to-machine transactions.

The protocol also supports both fiat and crypto payment rails globally. It operates across multiple blockchains and payment networks without relying on a single party.

Developers can build on x402 freely without being locked into any specific financial system. This open design ensures no single company controls the direction of the standard.

In a post on X, Coinbase stated that the foundation gives x402 a neutral, community-governed home. The Linux Foundation hosts the initiative to keep it free from commercial influence.

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No single company owns the x402 standard under this structure. This governance model keeps the protocol open and accessible to participants of all sizes.

Founding Members Drive the x402 Foundation Forward

The x402 Foundation launched with over 20 founding members across technology, payments, and finance. These include Adyen, Amazon Web Services, American Express, Ant International, and Base.

Google, Microsoft, Mastercard, Visa, Circle, Stripe, Cloudflare, and Shopify are also founding members. KakaoPay, Polygon Labs, Solana Foundation, Fiserv Merchant Solutions, and Thirdweb complete the founding group.

The foundation welcomes developers, startups, and enterprises of all sizes to join its membership. Members can directly help shape how the x402 standard evolves across platforms and markets.

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This inclusive model allows smaller companies to contribute alongside major industry players. Cross-border payments can become more consistent as more stakeholders adopt and build on x402.

Membership offers a direct role in governing how the world transacts online. Participants can advance the open payments standard across different regions and platforms.

The foundation mirrors how other internet protocols were built through open, collective governance. Through this shared effort, x402 can grow to serve a rapidly evolving digital economy.

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Crypto World

Bitcoin Supply in Profit and Loss Closer to 2022 Bear Market Levels

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Bitcoin Supply in Profit and Loss Closer to 2022 Bear Market Levels

The amount of Bitcoin supply in profit and loss is now getting closer to levels typical of a bear market, according to a CryptoQuant analyst.

There are currently about 11.2 million Bitcoin (BTC) in profit. The previous bear market recorded 9 million BTC in profit at its lowest point, CryptoQuant analyst “Darkfost” said Thursday. 

CryptoQuant data also shows there are about 8.2 million Bitcoin at a loss, with Glassnode data confirming it’s at levels not seen since late 2022. 

“This is quite significant, considering that during the last bear market this figure reached about 10.6 million BTC,” Darkfost said. 

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Analysts have been debating whether Bitcoin has further to fall this year amid growing global turmoil. Bitcoin metrics that show a movement toward previous cycle lows could suggest that a market bottom is getting closer. 

“This suggests that the market is reaching a notable level of undervaluation, comparable to the conditions observed during the previous bear market,” the analyst added. 

Bitcoin in profit and loss at bear market lows. Source: CryptoQuant 

Analyst sees increasing market stress, not undervaluation 

However, Andri Fauzan Adziima, research lead at the Bitrue exchange, argued the data signals “increasing market stress, not immediate undervaluation.”

True capitulation bottoms saw deeper pain, he told Cointelegraph. The supply in loss in 2022 was greater than 50% and the supply in profit was around 45% or lower, while metrics such as net unrealized profit/loss (NUPL) and market value to realized value ratio (MVRV) were at “extremes.”

“Current data points to early/mid-bear transition (potential structural bottom near $55,000), with more downside or consolidation likely before a full reset.”

Related: Bitcoin’s drawdown is ‘less dramatic’ this cycle, Fidelity says

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Data also shows Bitcoin has declined by about 52% from its all-time high this cycle, much less than previous bear markets, which saw 77% to 84% drawdowns from their cycle highs. 

Strong dollar hampering recovery 

Bitcoin author Timothy Peterson commented on X that Bitcoin “tends to struggle when the dollar is strong, and the Chinese yuan is weak.”

He added that this was due to tighter global liquidity, with higher dollar yields attracting capital into cash and bonds and cautious investor sentiment as China eases policy.

That only changes when US interest rates fall and “dollar yield loses its attractiveness,” which is not likely until the second half of 2026 or more likely 2027, he said. 

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The US dollar index (DXY) has gained about 5% over the past two months, according to TradingView. 

DXY has strengthened since late January. Source: TradingView

Magazine: Your guide to surviving this mini-crypto winter