Coinbase merges artificial intelligence and cryptocurrencies with a new on-chain payment protocol

Coinbase has introduced Payments MCP (Model Context Protocol), a new tool for developers that allows artificial intelligence (AI) agents to perform transactions directly on-chain using cryptocurrency wallets and stablecoins.

The launch, announced on October 23, marks Coinbase's next big step in integrating AI technology with decentralized finance (DeFi).

Payments MCP connects large language models with cryptocurrency payments without the need for API keys or complex setups. Compatible AI agents, such as Claude, Gemini, Codex, and Cherry Studio, can now execute actions on the blockchain such as creating wallets, transferring stablecoins, and purchasing data, simply through natural language commands.

According to Coinbase, this protocol enables AI systems to operate autonomously in the global economy by managing transactions, paying for computing, and managing digital assets. Users can create wallets with just an email address, set spending limits, and monitor transactions through a local desktop interface for added security.

Payments MCP also integrates with x402, a payment framework that Coinbase co-developed with Cloudflare, driving what the company calls "agentive commerce," where intelligent systems are not only analytical but also financially active participants.

The introduction of Payments MCP aligns with Coinbase's 2025 strategy to merge the AI and cryptocurrency ecosystems. It builds on recent initiatives such as USDC loans, the Google-Coinbase stablecoin protocol, and Base Layer 2 integrations, all aimed at expanding the company's payment infrastructure and developer offerings. $USDC