BitMart Research, the research arm of BitMart Exchange, has released a forward-looking report on x402, a groundbreaking Web-native payment protocol co-developed by Coinbase and Cloudflare that embeds stablecoin payments directly into HTTP requests. By reviving the long-dormant HTTP 402 “Payment Required” status code, x402 enables seamless micropayments between AI agents, APIs, and Web services—ushering in a new era of “Payment as Interaction.” With transaction fees below $0.0001 and sub-two-second settlement, x402 outperforms traditional payment rails and blockchain networks alike. Early ecosystem participants such as PING, PayAI Network, and Kite AI are already shaping a new infrastructure stack for AI-native economic coordination. This report explores how x402, together with emerging identity standards like ERC-8004, may lay the foundation for the autonomous agent economy—where intelligent agents transact, verify, and govern themselves across the open Web.
1. What is x402
x402, jointly launched by Coinbase and Cloudflare, is a Web-native payment protocol inspired by the long-dormant HTTP status code “402 Payment Required.” The protocol’s core innovation lies in embedding payment logic directly into web interactions—transforming payments into a fundamental component of internet communication, a paradigm known as “Payment as Interaction.”
Through x402, AI agents, API services, and Web applications can execute instant stablecoin payments directly within standard HTTP requests. With native support for stablecoins, micropayments, high-frequency transactions, and low-latency settlement, x402 enables AI agents to purchase data, tools, or computational resources on demand. Meanwhile, traditional Web2 services can integrate on-chain settlement with minimal technical adjustments—eliminating the need for account registration, email verification, or complex cryptographic signatures.
In practice, x402 reactivates the HTTP 402 status code to designate paywalled web resources. When an AI agent attempts to access restricted content—such as premium articles or API data—the server responds with a 402 status code containing the payment amount, recipient wallet address, and available payment methods. The agent then automatically generates and signs an equivalent stablecoin transaction. Once the transaction is verified by a Facilitator and settled on-chain, access to the resource is granted. This process effectively makes payment a seamless extension of network interaction.
Source：Coinbase
According to official data provided by Coinbase, x402 outperforms both traditional payment systems and the Ethereum mainnet in cost efficiency, speed, and scalability. Transaction fees average less than $0.0001, significantly lower than the roughly 3% processing fees charged by credit cards and PayPal, while also avoiding the high gas costs of Ethereum. Settlement occurs in approximately two seconds, with no chargeback mechanism, ensuring enhanced security and finality.
Furthermore, by eliminating chargebacks, x402 mitigates fraud and reversal risks, aligning more closely with the immutability principles of blockchain systems. In terms of performance, x402 is capable of supporting hundreds of thousands of transactions per second (TPS)—far exceeding both Ethereum’s mainnet throughput and traditional card networks.
Source：Coinbase
2. Emerging Projects in the x402 Ecosystem
PING
PING is the first token issued on Base under the x402 protocol. Although fundamentally a pure meme coin, some community members regard it as a “semi-inscription-like asset” given its pioneering role in introducing the x402 concept to the broader public. Driven by strong retail momentum, PING’s price surged nearly 20x within two days, pushing its market capitalization to approximately $80 million at peak levels before correcting to around $18.7 million.
PayAI Network
PayAI Network represents the practical and infrastructural implementation of the x402 protocol. Acting as an x402 Facilitator, it enables cross-chain payment processing across Solana and EVM-compatible networks, providing a unified gateway for verifying and settling HTTP-based on-chain payments under the x402 standard. The project’s native token, PAYAI, reached a peak market capitalization of $70 million, later retracing to around $26 million as the initial speculative wave subsided.
Kite AI
Kite AI has developed the Agentic Internet Transaction Layer, a foundational infrastructure designed to provide AI agents with unified identity, payment, and governance capabilities—effectively building an autonomous economic network where intelligent agents can transact, collaborate, and self-govern.
By integrating the x402 protocol, Kite enables AI agents to autonomously execute on-chain payments and resource calls without human intervention. Through the adoption of the ERC-8004 standard, the platform establishes identity and reputation verification, forming a closed-loop system of “verifiable identity + automated settlement.”
The project has raised approximately $33 million from leading investors, including PayPal, General Catalyst, Coinbase, and Animoca Brands. Kite is currently considered the most institutionally backed project in the x402 ecosystem. As of October 30, its fully diluted valuation (FDV) stood at approximately $1.46 billion, and pre-market trading is already available on Binance and OKX.
Pieverse
Pieverse is a TimeFi platform built around the concept of improving time-value matching between users and resources. While initially unrelated to x402, Pieverse later introduced pieUSD, a USDT wrapper token supporting the ERC-3009 standard, effectively resolving the BNB Chain’s incompatibility with x402.
Moreover, the team upgraded x402 to x402b, extending its functionality beyond payments to include verifiable payment receipts—providing cryptographic proof of transaction participants rather than relying solely on autonomous AI activity.
Pieverse raised $7 million in strategic financing led by Animoca Brands and UOB Ventures, securing a notable position in the BNB Chain’s x402 sector.
3. After the x402 Hype: What Comes Next
Although the x402 concept became one of the most discussed narratives within just two days of its debut—driving significant rallies across related assets such as PING and PayAI—market enthusiasm cooled rapidly, with many leading tokens experiencing deep corrections of around 80% from their highs. Nevertheless, the underlying narrative remains far from over.With the continued rollout of new entrants like Kite AI and Pieverse, investor attention toward the x402 ecosystem is likely to reignite in upcoming cycles.
Notably, alongside x402, another emerging protocol standard—ERC-8004—has been gaining traction within the AI agent economy. While x402 focuses on payment and settlement mechanisms, ERC-8004 addresses identity and reputation verification in the pre-payment phase.
The ERC-8004 framework introduces three key registries—Identity Registry, Reputation Registry, and Validation Registry—to establish a decentralized system for identity authentication, reputation scoring, and credential verification for AI agents.
From a structural standpoint, x402 and ERC-8004 form complementary layers of the emerging AI economic infrastructure: x402 facilitates value transfer, while ERC-8004 ensures trust and access control. Together, they could serve as the foundational “Payments + Identity” stack of the autonomous agent economy—potentially driving the next wave of AI-native financial and transactional innovation.
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