Coinbase Launches Revolutionary Protocol for AI Crypto Payments!

Coinbase Launches Revolutionary Protocol for AI Crypto Payments!

Coinbase launched a groundbreaking protocol called Payments MCP (Model Context Protocol) on October 23, 2025, allowing AI agents to transact with crypto wallets and stablecoins directly on-chain. This new system represents a revolutionary development in the integration of artificial intelligence and blockchain technology and is expected to transform the way digital payments are made.

The Payments MCP protocol gives AI systems access to a number of important blockchain functions. This includes creating wallets, using onramps for the first crypto transactions and transferring stablecoins. Supported AI agents such as Claude, Gemini, Codex and Cherry Studio are able to design payments using natural language commands, significantly simplifying human-machine interaction.

Simplicity and security for users

Coinbase provides users with a simple and secure system that allows wallets to be created using just an email address. The ability to set spending limits and the ability to track transactions via a local desktop interface increases users' security and control over their financial activities. This user-friendly design could help further drive cryptocurrency adoption.

Additionally, the protocol integrates with x402, a payment framework that Coinbase developed in collaboration with Cloudflare. This interaction between the two companies highlights efforts to maximize the efficiency and security of crypto transactions.

Agentic Commerce and the future of payments

Coinbase describes the Payments MCP protocol as a step towards “agentic commerce”, in which intelligent systems not only analyze but also actively participate in financial transactions. This vision aims to connect AI infrastructure with crypto payment infrastructure and could permanently change the way business is conducted in the digital world.

As part of its 2025 strategy, Coinbase highlights the importance of crypto payments, particularly the use of stablecoins. These are considered the “ideal payment infrastructure” for AI systems as they enable fast transactions, are modular and minimize human friction. In the coming months, Coinbase plans to increase support for additional models and developer tools to connect a wide range of AI capabilities with practical financial applications.

In summary, Coinbase's Payments MCP protocol not only represents a technical innovation, but also shows how the increasing connection between AI and blockchain could shape the future of financial transactions. You can find more information about this in the reports from Crypto News.