Cardano integrates x402 to advance AI-powered payments
Cardano has taken a significant step towards enabling AI-powered payments by integrating the x402 payment standard, allowing for automated transactions conducted by artificial intelligence agents on the blockchain. The development was announced by the Masumi team, responsible for implementing x402 support within the Cardano-based infrastructure. Initially introduced by Coinbase and further developed in collaboration with various web ecosystem partners, x402 rekindles the concept of autonomous internet micropayments, empowering bots and AI agents to independently handle on-chain payments.
This integration marks a pivotal moment for Cardano, as noted by Charles Hoskinson, the blockchain’s co-founder, emphasizing the transformative potential of this advancement. The x402 standard facilitates HTTP-based payment requests, empowering AI agents to pay for resources and services via API, conduct transactions using ADA and USDM, and engage with other AI systems directly without the need for intermediaries. Enhanced by a trust layer that incorporates identity verification, reputational assessment, transparent auditing, and refund mechanisms, x402 has the capacity to reshape Cardano into the financial backbone of an evolving “agent economy,” where automated systems seamlessly trade, collaborate, and transact with each other.
As part of a Proof-of-Concept, users can currently mint a test memecoin by submitting 2 USDM and a nominal amount of ADA, demonstrating how this integration could potentially streamline DeFi protocols, including token swaps, lending, and staking, all without the direct involvement of users interacting with smart contracts. This integration holds significant promise for Cardano’s DeFi ecosystem, which, at present, lags behind other competitors in terms of market cap and locked DeFi liquidity.
In response to the slower-than-desired rollout of DeFi features, particularly in comparison to Ethereum and Tron, Hoskinson has criticized the Cardano Foundation, citing a $15 million marketing expenditure in 2024. Nevertheless, the Cardano community recently greenlit an additional $33 million in ADA to bolster stablecoin liquidity for DeFi initiatives. Masumi is actively testing x402 on smart contracts and providing a public demo for users to refine the standard’s operational mechanics.
Looking ahead, Cardano’s updated roadmap includes the adoption of CIP-0113 and CIP-0143 standards, the implementation of a new payment framework, and expanded support for DeFi and Web3 startups. Furthermore, a 12% increase in the marketing budget for 2026 is in the pipeline, underscoring Cardano’s commitment to fostering innovation and adoption within its ecosystem. If successful, Cardano could position itself as the first blockchain to establish a functional AI-driven transaction network, bridging the gap between autonomous systems and decentralized finance.
