KEYTAKEAWAYS
- Coinbase’s AI strategy began with “hacker-driven experiments,” not hype.
- Agentic Commerce turns AI from an “advisor” into an “executor,” solving the last mile problem.
- USDC and X402 are the foundation, but identity and industry consensus remain the biggest challenges.
CONTENT
Coinbase is using AgentKit, USDC, and the X402 protocol to explore Agentic Commerce — allowing AI to move from recommendation to execution, and building a new machine-to-machine payment model. This could become the first true consumer killer app in crypto history.
INTRODUCTION
In the past ten years, Coinbase has transformed from “the safest exchange” into “a technology company promoting global economic freedom.” Now, it adds a new label — an AI-powered on-chain commerce infrastructure.
At WebX 2025, Dan Kim, VP at Coinbase, introduced a concept that could disrupt the internet: Agentic Commerce.
The question is: is this just hype, or a logical necessity?
AN ACCIDENTAL START: THE “HACKER EVOLUTION” OF AI AGENTS
Coinbase did not originally plan to enter AI. Dan Kim recalled that at DEFCON 2024, they saw hackers using AI agents to run complex on-chain tasks — from sniping and arbitrage to minting tokens.
This made Coinbase realize: AI already “understands” blockchain, but it lacks standardized interfaces. If left in the shadows, this would remain niche or gray-market behavior. But if someone could turn it into tools and legal infrastructure, it could enter the mainstream.
So, Coinbase launched AgentKit. It wraps complex blockchain service calls into simple APIs, making it easy for AI agents to transfer, trade, and interact on-chain as if calling normal functions. This move turned scattered experiments into something scalable.
COINBASE’S NEW LOGIC: AI’S “LAST MILE PROBLEM”
Today’s AI can plan trips, recommend products, or suggest repair steps. But it still lacks the “last step” — making the actual payment.
This is the last mile problem of AI: it can advise, but it cannot act.
Coinbase’s answer is Agentic Commerce. By giving AI agents wallets and on-chain execution power, AI becomes more than an advisor — it becomes a true digital agent that can take action.
To achieve this, Coinbase chose crypto:
- USDC: enables micro-payments, avoiding the high fees and minimum limits of credit card systems.
- X402 protocol: Coinbase resurrected the unused HTTP status code 402 Payment Required, extended it as X402, and positioned it as an open standard for agent-to-agent payments over the web.
In this way, AI can finally move from “advisor” to “executor,” closing the loop from recommendation to action.
FROM VISION TO REALITY: THE FUTURE OF AGENTIC COMMERCE
Coinbase’s vision of Agentic Commerce is not far-off science fiction — it is close to reality:
- Home assistant: when a fridge breaks, AI diagnoses the issue and automatically orders the replacement part.
- Travel assistant: ChatGPT not only suggests itineraries but also books flights and hotels.
- Content and data services: an AI agent spends $0.20 to unlock an article or instantly calls a data API.
This changes user behavior: from “search → click → pay” into “chat → done.” Search engines may be bypassed, Amazon’s role could weaken, and the new gateway to the internet may be AI agents.
Dan Kim even predicted adoption could begin as early as next year, perhaps in the first half of the year.
TECHNOLOGY IS NOT THE HARD PART — THE REAL BATTLE IS CONSENSUS
Coinbase knows the road will not be easy:
- Identity: How do we make sure an AI agent is not a “bad bot”? Companies like Cloudflare are exploring agent repositories, where each agent is registered with a verifiable ID.
- User control: How can users prevent overspending? Agents must follow rules and spending limits set by their owners.
- Ecosystem adoption: Whether X402 becomes an industry-wide standard will decide if Agentic Commerce can truly succeed.
In other words: technology can be solved, but rules and consensus are the true battlefield.
REVOLUTION OR ILLUSION?
Coinbase is placing a big bet: it wants AI agents to become new “consumers” on-chain. Behind this are two goals:
- External: drive adoption of USDC and Base, making crypto the settlement layer of the AI economy.
- Internal: turn “AI payment loops” into Coinbase’s moat.
It sounds disruptive, but it is also uncertain:
- If users and developers do not adopt it, Agentic Commerce could become just another buzzword.
- If identity and security are not solved, AI agent economies could become high-risk zones.
Yet, if it succeeds, this could be the first true consumer killer app in crypto history.
Coinbase’s bet may decide whether AI and crypto truly merge — either becoming the new gateway to the internet, or just another short-lived narrative.
Read More:
【WebX 2025】Japan’s Bitcoin ETF: Feasibility and Challenges to Overcome
【WebX 2025】Crypto regulation and Stablecoin Adoption in the US and Japan
【WebX 2025】Adam Back: The Bitcoin Operating System
Looking for the latest scoop and cool insights from CoinRank? Hit up our Twitter and stay in the loop with all our fresh stories!
