In brief:
₿- Google introduced the Agent Payments Protocol (AP2), allowing AI applications to send and receive money using both traditional payment methods and stablecoins.
₿- The initiative, developed with partners like Coinbase and the Ethereum Foundation, aims to create secure, standardised, and interoperable AI-driven payment systems across industries.
Google has unveiled a groundbreaking framework that blends artificial intelligence with digital finance. The new Agent Payments Protocol (AP2) enables AI applications to send and receive money, including stablecoins pegged to traditional currencies. This development signals a major step toward frictionless, automated financial transactions.
Coinbase and global partners join the initiative
The protocol builds on Google’s earlier Agent2Agent standard, which allowed AI systems to communicate seamlessly. AP2 expands that concept into the financial world by introducing rails for both crypto payments and traditional methods such as bank transfers and credit cards.
Google’s strategy is reinforced by a powerful network of collaborators. Coinbase, the Ethereum Foundation, Salesforce, American Express, and Etsy are among more than 60 companies working with Google to make AP2 interoperable across industries. Coinbase’s experience in developing AI-driven payments was particularly influential in shaping the new system.
According to Google, AP2 is an open and shared protocol designed to provide a common language for transactions between AI agents, merchants, and institutions. By unifying standards, the protocol aims to prevent a fragmented payments ecosystem while ensuring compliance and security.
Solving challenges of AI-led transactions
AI agents are becoming capable of completing tasks without constant human involvement. While that efficiency is powerful, it introduces new risks. Traditional payment systems are built on the assumption that a human authorizes every step. AP2 tackles this by setting rules for authorization, authenticity, and accountability, allowing AI agents to execute financial transactions safely.
The innovation could reshape how people and businesses handle payments. From routine shopping to complex financial services like mortgages, AI systems equipped with AP2 could process transactions faster and more securely than ever before.
The stablecoin momentum
The timing of AP2 is significant. Stablecoins are surging in adoption, with circulation climbing to $289 billion in 2025, up from $205 billion at the start of the year, according to DefiLlama. Investor confidence is also strong, highlighted by Circle’s IPO earlier this year.
By embedding stablecoins into AI frameworks, Google is aligning with one of the fastest-growing sectors in digital finance. The result is a powerful synergy: stablecoins provide stability and scalability, while AI delivers automation and intelligence. Together, they represent the next frontier of digital payments.
As Google, Coinbase, and industry leaders push this initiative forward, AP2 could mark the beginning of a new era where AI and crypto payments converge to power the future of finance.
Stay informed,
Rodcas Consulting Group