Coinbase CEO: Crypto Is the Payment Rail AI Agents Need

Coinbase CEO Brian Armstrong is making a straightforward case: artificial intelligence agents need crypto because banks will not serve them. An AI agent has no passport, no legal identity, no way to sign a standard banking form. It cannot open a checking account, pass a KYC check, or wait three days for a wire transfer. Armstrong argues that crypto solves that problem directly.

He calls the concept agentic finance – autonomous software that holds wallets, pays for services, and settles transactions without human approval. Coinbase has started building the infrastructure to make it happen.

The core problem is structural. Banks require account holders to provide identification, pass background checks, and maintain direct control over their accounts. AI agents exist as software. They cannot complete those steps. They have no passports, no legal identities, and no ability to sign standard banking documents.

Crypto wallets solve part of that problem by allowing software to send and receive digital assets. Developers can program an agent to pay for data, computing power, storage, or access to an online service. The agent completes those payments without waiting for a bank transfer or manual approval.

This system also supports small payments that traditional banks often handle poorly. An AI agent may need to pay a few cents for one data request. Crypto networks can process that payment through code and settle it within seconds.

Coinbase launched the x402 payment protocol in May 2025. The system uses the HTTP 402 "Payment Required" code, which remained unused for years. x402 turns that code into a payment tool for websites, applications, and automated software.

When an AI agent reaches paid content or requests an API service, x402 can process the charge automatically. The protocol mainly uses USDC on Base, Coinbase's Layer 2 network. This setup gives agents a stable payment asset and keeps transaction costs low.

x402 has processed more than 100 million machine-to-machine transactions in about nine months. Its 30-day payment volume recently reached $24.24 million. In May 2026, the protocol handled 3.1 million transactions worth around $1.2 million.

Base has become a key part of Coinbase's agentic finance strategy. More than 90% of on-chain agentic stablecoin payments already take place on the network. Base offers lower fees and faster settlement than many larger blockchain networks.

USDC gives AI agents a stable unit for pricing and budgeting. An agent can calculate a service cost without worrying about large price swings. It can also follow spending limits that developers set before deployment.

This activity gives Base another source of network demand beyond trading. It also strengthens USDC's position in automated commerce. x402 still handles a small amount compared with global card and banking networks.

Coinbase launched Coinbase for Agents in June 2026. The product gives developers tools to let AI systems trade, spend, and manage funds within rules. Companies can limit how much an agent spends and control which services it can access.

The x402 Foundation also operates under the Linux Foundation. Coinbase, Cloudflare, and Stripe support the project. Their involvement gives x402 access to blockchain, internet infrastructure, and payment industry experience.

Armstrong says AI and crypto do not compete for the same future. He sees crypto as the payment layer that allows AI agents to join online markets. These agents could pay cloud bills, buy data, manage portfolios, and fund their own operations.

The next stage will depend on wider business use. Developers and investors will watch transaction growth, new integrations, and enterprise adoption. They will also track whether x402 expands beyond Base and USDC.

Armstrong has linked this growth to clear US crypto rules. He warned that Coinbase may move some activity abroad if lawmakers fail to pass lasting legislation.