What is HTTP 402, and why does it matter? The web was not really built with payments in mind, especially not for autonomous agents or machines. But with the rise of AI and decentralized finance (DeFi), the need for seamless, native digital payments has never been more urgent. Coinbase x402 announced a new open protocol designed to let APIs, apps and AI agents pay instantly using stablecoins like USDC USDC $0.9998 , all via the familiar HTTP protocol. This isn’t just a product update. X402 revives a long-forgotten piece of internet infrastructure and reimagines it for a future powered by agentic systems and crypto. HTTP status codes: A quick refresher Understanding HTTP status codes helps clarify how the web communicates behind the scenes. Here are some key ones to know: HTTP 200 — OK: Standard response for successful HTTP requests. HTTP 401 — Unauthorized: Indicates the request requires user authentication; typically used when credentials are missing or invalid. HTTP 403 — Forbidden: The server understood the request, but it refuses to authorize it (often due to lack of permissions or access control). HTTP 404 — Not found: Indicates that the requested resource could not be found. HTTP 402 — Payment required: Originally intended to support digital payments directly within the protocol but left as a “reserved for future use” status code due to the lack of global payment infrastructure at the time. HTTP 402- payment required error HTTP 500 — Internal server error: A generic error message when the server encounters an unexpected condition. Although the creators of the web imagined a future where online services might request payments directly through the protocol, for decades, no one found a practical use for it. It sat dormant for over 25 years, with no widespread adoption or defined behavior. Today, HTTP 402 is finally coming to life, thanks to Coinbase’s x402 protocol. X402 turns HTTP 402 from a placeholder into a real mechanism. It allows websites, APIs and services to signal that a payment is required before granting access to digital goods or services. Unlike traditional payment systems, which rely on external redirects or complex integrations, x402 enables native, in-protocol payments using stablecoins directly over HTTP. But why do x402 and the activation of HTTP 402 matter? With machine-to-machine interactions, autonomous agents and AI-driven services on the rise, the internet needs a payment layer that is: Instant Programmable Interoperable Trust-minimized. Activating HTTP 402 positions it as a key enabler for decentralized commerce, autonomous agents and crypto-native applications. It could become as foundational as HTTP 200 or 404 in a future where services charge micro-fees, stream value or sell access dynamically. Coinbase x402: A native payment layer for the web Coinbase’s x402 is an open protocol that allows websites and APIs to request and receive payments in stablecoins directly over HTTP. It works by using the existing HTTP infrastructure and augmenting it with a lightweight payment layer. Here is the step-by-step process for machine-to-machine transactions using the x402 protocol: Client requests a paid resource: A client, such as an AI agent, app, or browser initiates a request to an x402-enabled server (e.g., an API, data set or digital service) that requires payment to access. The server responds with a 402 Payment Required: In response, the server returns an HTTP 402 status code, along with the payment details. This includes the amount to be paid, the supported token (such as USDC) and a payment payload or address to use. Client submits the payment: The client uses its crypto wallet to sign and submit the payment. This happens programmatically — no user interaction is needed, which enables fully automated or agentic payments. It resends the original request, this time including the encoded payment information in an X-PAYMENT HTTP header. The payment is verified and settled onchain: A payment facilitator service, such as Coinbase’s x402 Facilitator, checks the blockchain to verify that the payment has been made and confirmed. The server delivers the resource: Once the payment is validated, the server fulfills the request and returns the data or content. It also includes an X-PAYMENT-RESPONSE header confirming the success of the transaction. In x402, payments happen over standard HTTP using two custom headers: X-PAYMENT and X-PAYMENT-RESPONSE. These headers allow seamless, automated payments between apps, agents and servers — without changing how HTTP works. It’s a simple yet powerful way to enable web-native, machine-to-machine commerce using stablecoins. What makes x402 revolutionary is that it doesn’t require platforms, plugins or third-party integrations. It creates a native payment layer for the web itself, just like HTTPS added security or cookies enabled session management. X402 payment flow Did you know? HyperText Transfer Protocol Secure (HTTPS) is the secure version of HTTP, the foundational protocol used to transfer data on the web. What are agentic payments, and why are they important? As AI systems become more advanced, the agentic era has begun. In this new paradigm, software agents, ranging from AI bots to autonomous scripts, are expected to act on behalf of users or even independently. AI agents will need to perform actions like accessing data, subscribing to services or renting compute power. And all of these tasks often require payments. This is where the concept of agentic payments comes in. These are payments made by agents, not humans — fast, automatic and often low-value. Think of a data-scraping AI paying a cent to read a scientific article or a supply chain bot paying fractions of a dollar for live port data. Traditional payment infrastructure wasn’t built for this kind of use case. It falls short because of the below reasons: Built for humans, not machines. Requires logins, manual steps and batch processing. High fees and slow settlement times make them unsuitable for high-frequency, low-value, autonomous transactions. Because of the limitations of traditional payment systems, agentic payments matter for several key reasons: They enable a machine-first economy, where software can transact just like humans. Make real-time AI decision-making possible by removing friction from access to paid services. Pave the way for composable services, where agents can chain together paid APIs and tools autonomously. As discussed, such payments require machine-readable protocols, instant settlement and predictable pricing, all of which x402 enables. It’s a vital step in building a transactional layer for a machine-first internet. x402 vs. traditional payment systems Today’s online payment systems are deeply human-centric. Whether it’s signing up for a subscription, entering credit card information or passing Know Your Customer (KYC) checks, the current infrastructure assumes a person is at the center of every transaction. This design becomes a bottleneck when payments need to be made automatically, in real time and at scale. APIs that want to monetize often face hurdles like creating user accounts, handling fraud, managing disputes and integrating with centralized processors like Stripe or PayPal. These systems are slow, costly and often region-specific. X402 removes these barriers by allowing servers to ask for and receive payment directly through the protocol itself. There’s no need for logins, billing dashboards or delayed bank transfers. The value transfer is embedded into the fabric of the internet, optimized for agents and apps. The contrast between x402 and traditional payment infrastructure is stark. While x402 is protocol-first, built on crypto rails, systems like Visa, Stripe and PayPal are platform-first. X402 enables payments to settle in seconds using onchain transactions, while traditional rails typically settle over one to three business days. Risks and rewards of USDC staking vs. investing in US treasuries Moreover, x402 supports micropayments as small as fractions of a cent, making it viable for high-frequency, low-cost interactions — something that’s infeasible on credit card networks due to fees. It’s also global by design, requiring no currency conversions or regional banking relationships. Chargebacks, fraud risk and intermediary fees are virtually eliminated, thanks to the immutability of onchain transfers. Where traditional systems focus on human users with front-end interfaces, x402 enables machine-native, backend-to-backend monetization. Did you know? You can detect HTTP 402 responses using tools like Sitechecker Pro, which scans your site like a search bot and flags unusual status codes — including payment-related ones. Incumbents’ act: How Visa, Stripe and PayPal are exploring AI-powered payments To be fair, incumbents aren’t ignoring this trend. Visa, Stripe and PayPal have all acted to be in line with the trend and incorporate appropriate changes in their approach. Visa Visa has announced initiatives to allow AI agents to make purchases on behalf of users by linking them to its global payments network. This move aims to facilitate autonomous AI assistants capable of performing shopping tasks, such as managing routine purchases, based on user-defined budgets and preferences. In partnership with Bridge, a stablecoin infrastructure provider, Visa is launching stablecoin-linked Visa cards across multiple countries in Latin America. This collaboration enables users to make everyday purchases using cryptocurrency tokens, with plans to expand to Europe, Africa and Asia in the coming months. Stripe Stripe has unveiled a new AI foundation model aimed at improving fraud detection and authorization rates. This model, trained on billions of transactions, has significantly increased the detection rate for fraudulent activities, such as card-testing attacks, enhancing the security of its payment systems. Stripe has introduced Stablecoin Financial Accounts, allowing businesses in over 100 countries to hold balances in dollar-backed stablecoins like USDC and USDB. These accounts support global payments and enable firms to manage stablecoins alongside traditional payment methods. PayPal PayPal is set to launch a rewards program offering users a 3.7% annual yield on holdings of its stablecoin, PayPal USD PYUSD $0.9996 , in PayPal or Venmo wallets. This initiative aims to encourage the adoption and utilization of PYUSD for various transactions, including merchant payments and peer-to-peer transfers. PayPal has expanded its partnership with Coinbase to increase the adoption and utilization of PYUSD. This collaboration focuses on developing stablecoin-based payments and banking solutions, as well as exploring other use cases for PYUSD in DeFi and onchain platforms. Protocols vs. platforms: The distinct approaches While Visa, Stripe and PayPal are making significant strides in integrating AI and stablecoins into their services, these companies still operate within walled gardens. They offer services, not protocols. Their infrastructures are: Centralized: Governed by corporate policies and APIs. Permissioned: Access requires onboarding, KYC and platform approval. Closed ecosystems: Where user experience and interoperability are tightly controlled. In contrast, x402 is permissionless and open, allowing any developer to plug into it without needing a merchant account. And the distinction between centralized services and open protocols like x402 will play a crucial role in shaping the future landscape of digital payments, potentially leading to a more decentralized and agent-driven economy. What is x402’s monetization model? One of the most practical use cases for x402 is API monetization. In today’s model, developers must create keys, handle access tiers, and enforce rate limits manually. With x402, APIs can simply respond to unauthenticated requests with a 402, indicating a cost, for example, $0.001 to access a data endpoint. A client can then send the required stablecoin payment and receive the response instantly. This turns APIs into microservices with embedded pricing, enabling fine-grained monetization at the level of individual function calls. It’s a model that fits naturally with both AI workloads and human developers who want to pay only for what they use. Stablecoins like USDC are central to the success of x402 and agentic payments more broadly. Their key benefit is price stability, allowing developers and agents to transact in predictable units without worrying about crypto volatility. That’s critical for applications that operate with tight budgets or usage-based pricing. USDC also offers fast finality, especially on chains like Base, Solana and Ethereum layer 2s, where transfers can confirm in seconds with minimal fees. Its broad support across wallets, APIs and ecosystems makes it a practical choice for integration. Other stablecoins like PYUSD or EURC may become relevant, but USDC’s dominance in DeFi and institutional finance gives it a clear head start. Challenges and opportunities for agentic payments Agentic payments raise important questions around security, like how can bots manage private keys safely? There’s also the issue of abuse — will bad actors flood servers with fake payments or exploit pricing models? Regulatory concerns also loom. But the upside is enormous. The emergence of a machine-to-machine economy has led to a situation where agents transact for data, compute, bandwidth and services without human input. Protocols like x402 are the rails that will power this fast, open and crypto-native economy. Coinbase’s x402 is more than a technical upgrade; it’s a new payment primitive for the programmable web. By bringing crypto payments over HTTP to AI agents and APIs, x402 transforms how the internet handles value. It opens the door to a future where transactions are embedded, automatic and driven by machines, not just people. As the digital economy evolves, protocols like x402 could become the foundation of the new internet, powered by a new-age financial infrastructure.

Europol has announced the arrest of 17 individuals involved in a criminal parallel banking organization that provided money laundering services across Europe, including the exchange of cryptocurrencies for cash. The operation, conducted on January 14, 2025, in Austria, Belgium, and Spain, followed previous successful actions against migrant smugglers. The arrested individuals, primarily of Chinese and Syrian nationality, are suspected of facilitating illegal banking services, including hawala banking and cash courier services, to various criminal networks. Law enforcement seized assets worth over €4.5 million, including €183,000 in cryptocurrency, cash, bank accounts, real estate, vehicles, and firearms. This dismantling of the criminal network is considered significant, as it was linked to the laundering of over €21 million in illicit proceeds, serving a diverse clientele through social media advertising. Europol’s involvement included deploying experts to assist national investigators in tracking down the network’s operations.

Bitcoin ETFs came roaring back with a $320 million net inflow, led by Blackrock’s IBIT. Ether ETFs also continued their rebound, logging a second straight day of inflows totaling $63 million. Crypto ETFs Catch Fire: Bitcoin Funds Soar, Ether ETFs Log Second Strong Day After a brief pause on Tuesday, May 13, bitcoin exchange-traded funds (ETFs) returned with fresh fire on Wednesday, May 14. A robust $319.56 million in net inflows flooded into the market, signaling a renewed wave of investor confidence. Blackrock’s IBIT once again dominated, pulling in $232.89 million, continuing its reign as the favored institutional vehicle. Fidelity’s FBTC followed with $36.13 million, and Grayscale’s Bitcoin Mini Trust added $35.23 million to the day’s haul. Smaller but notable inflows came from Vaneck’s HODL ($7.32 million), ARKB ($5.16 million), and Bitwise’s BITB ($2.82 million). No outflows were recorded across any of the 12 funds, a rare occurrence in recent weeks. Total value traded hit $2.74 billion, with net assets climbing to $121.84 billion. Ether ETFs mirrored bitcoin’s resurgence with a $63.47 million net inflow, making it two green days in a row for the asset class. The charge was led by Blackrock’s ETHA, which attracted $57.61 million, while Fidelity’s FETH contributed $5.86 million. With $447.95 million in total value traded, ether ETF net assets rose to $9.04 billion, keeping momentum alive in the broader crypto ETF landscape. For now, both bitcoin and ether ETFs seem to have found solid footing, bolstered by institutional appetite and a resilient market tone.

Nebraska passes LB 526 to regulate crypto mining operations using over 1MW. Final call now rests with the Governor.

Money is changing fast. Bitcoin, stablecoins, and CBDCs each offer a different take on what money can be — and each comes with its own set of rules. Bitcoin keeps it simple: the rules never change. No central authority, no sudden shifts — just consistent, transparent money. Stablecoins, acting like digital dollars, step in where traditional money falls short. They’re practical but centralized, meaning someone can always freeze your funds. Meanwhile, some central banks are pushing digital currencies (CBDCs), promising efficiency and control. But that control cuts both ways: more oversight, less privacy. The real question isn’t which digital currency will dominate. It’s whether people will see the value in money with fixed rules, even as other forms of digital currency remain open to manipulation. Bitcoin’s Rising Dominance: Trust in Fixed Rules Bitcoin dominance — its share of the total cryptocurrency market cap — hit 65% in May 2025, the highest in over four years. This rise signals a shift toward assets with fixed, predictable rules in a landscape of volatility and uncertainty. Bitcoin’s appeal isn’t just scarcity; it’s consistency. Unlike many crypto assets that adjust supply schedules or change monetary rules, Bitcoin’s issuance remains fixed. This predictability is what differentiates Bitcoin in a market where other assets can alter their underlying structures. Ethereum’s shift to proof-of-stake in 2022 illustrates this contrast. The move fundamentally changed Ethereum’s monetary policy, and the asset has since dropped 74% against Bitcoin. Investors may be reconsidering the stability of assets that can adjust supply schedules or consensus rules But the rise in Bitcoin dominance isn’t just about crypto. It also reflects broader economic uncertainty, where investors seek assets with rules that don’t change, even as monetary systems become more programmable and open to manipulation. Adjustability and Uncertainty As Bitcoin’s dominance grows, the broader crypto market takes a different approach — assets that can be adjusted or altered based on market conditions. Projects tweak supply schedules, modify consensus mechanisms, or issue new tokens to attract capital. The ability to pivot is often framed as a feature — more flexibility, faster scalability. But when the rules can change, so can the value. A token’s supply might increase unexpectedly, diluting existing holdings. Governance structures might shift, introducing new risks. The ability to alter the rules introduces uncertainty, especially in a market defined by speculation and hype. Bitcoin doesn’t adjust to fit new narratives. Its rules are fixed — a contrast to assets that can be altered, restructured, or inflated. As investors retreat to predictability, Bitcoin’s rising dominance reflects a preference for assets that don’t change with the market’s whims. Stablecoins: Practical Solutions, Centralized Risks Stablecoins have become a financial lifeline in economies where local currencies are volatile or banking infrastructure is unreliable. In 2024, Tether ( USDT) alone facilitated over $20 trillion in transaction volume, underscoring the demand for stable, fiat-pegged assets in unpredictable markets. For people facing hyperinflation or currency devaluation, holding digital dollars can feel like a safe haven. However, that sense of stability is relative. Stablecoins may hold their peg to the dollar, but the dollar itself continues to lose purchasing power over time. The trade-off is clear: stablecoins may protect against local currency collapses, but they’re still controlled by centralized issuers who can freeze assets, blacklist addresses, or comply with regulatory orders. In 2024, multiple incidents of frozen USDT accounts revealed the vulnerabilities of relying on assets that can be halted or confiscated at will. Stablecoins may be less volatile than Bitcoin in the short term, but their stability comes with conditions: issuer control, regulatory risk, and exposure to fiat’s inflationary drift. While they can provide a temporary hedge against local currency collapse, they remain tied to a monetary system that is prone to losing value over time. CBDCs: Central Bank Innovation or Financial Control As digital payments evolve, central banks are exploring digital currencies to reassert control over monetary systems. The European Central Bank is expected to decide on the digital euro by late 2025, positioning it as a state-backed alternative to private stablecoins. In Nigeria, the eNaira was introduced in 2021 to manage cash shortages and streamline payments, granting the state unprecedented visibility into financial flows. Meanwhile, China’s digital yuan has been aggressively rolled out, combining cashless convenience with comprehensive transaction monitoring. But CBDCs aren’t just about making payments digital. They’re about redefining how state-controlled money functions in a digital economy. We see these concerns every day in conversations with users around the world. In our day-to-day work at Trezor, we keep hearing the same thing — people want to stay in control of their money in a world that’s changing fast. Unlike cash, which offers a degree of anonymity, CBDCs enable governments to monitor transactions in real time, potentially setting conditions on how money is spent, saved, or transferred. China’s digital yuan pilot has already tested features that limit where funds can be spent and how long they remain valid — measures framed as economic tools but viewed by critics as control mechanisms. The potential for overreach hasn’t gone unnoticed. In the UK, a Trezor survey found that 73% of respondents worry about CBDCs giving governments too much power over personal finances, particularly the ability to freeze funds or restrict spending. Whether positioned as financial inclusion tools or mechanisms to combat fraud, the reality remains: CBDCs could fundamentally alter the relationship between citizens and their money. Bitcoin’s Institutional Moment and the Path Forward Bitcoin is becoming a strategic asset as institutions and states look for stability in a financial landscape where digital assets can be adjusted, frozen, or reprogrammed. Public companies continue to add Bitcoin to their reserves, positioning it as a hedge against monetary instability. In the U.S., states like Arizona and New Hampshire are exploring Bitcoin reserves, positioning it as a safeguard against economic uncertainty. Meanwhile, institutional inflows into spot Bitcoin ETFs indicate growing recognition of Bitcoin as a reserve asset with predictable rules. As more assets become programmable and open to control, Bitcoin’s rules stay the same. Its supply is capped, its issuance predictable, and its network neutral. While other assets can be adjusted or restricted by issuers, Bitcoin’s framework is fixed — a contrast to a financial landscape increasingly defined by flexibility and control. Conclusion: Navigating a New Monetary Landscape As digital currencies become more entrenched in the global economy, the question isn’t just which type will prevail — it’s whether people will value money with rules that don’t change. Bitcoin’s rise underscores a shift toward assets with predictable frameworks, driven by growing skepticism of programmable assets and centralized control. While stablecoins provide a lifeline in unstable economies and CBDCs promise state-backed efficiency, both come with conditions — issuer control, regulatory risk, and potential for monetary manipulation. Bitcoin, in contrast, stands apart as a monetary system where the rules are set in stone, immune to policy shifts and inflationary drift.

Bitcoin has once again captured headlines, clawing its way back above key resistance levels and reigniting the dreams of a full-fledged bull run. Social media is buzzing, search interest is spiking, and the “Bitcoin to the moon” crowd is getting louder by the day. But beneath the surface of green candles and renewed hype lies a sobering question: Is this rally the real deal, or just another technical bounce before the next leg down? A Familiar Pattern or a New Cycle? Veteran traders recognize this pattern. Bitcoin has a long history of sharp recoveries that mimic bull runs — only to trap latecomers before a steep correction. The current price movement, while promising, shows signs of fragility: low volume on up days, strong resistance at historical levels, and a market still heavily influenced by macroeconomic forces. The Halving Hype – Already Priced In? Many bulls point to the recent Bitcoin halving as a bullish catalyst. But here’s the uncomfortable truth: the market is forward-looking. Smart money started positioning months ago. If you’re only reacting now, you’re probably late. The halving may already be “priced in,” and without new capital inflows, we could see stagnation or worse — a retracement. Institutional Money – Support or Smokescreen? Yes, BlackRock and other giants are now in the game. But institutions don’t chase pumps — they accumulate in silence and dump in euphoria. Their presence brings legitimacy but also layers of market manipulation retail investors often underestimate. Don’t let the “institutional adoption” narrative blind you from the possibility of profit-taking at scale. Conclusion: Be Bullish, But Be Smart Bitcoin may very well reclaim its previous all-time high, or even set new records. But not every green candle is a signal to ape in. This could be the beginning of a new cycle — or just a trap wrapped in hopium. Trade what you see, not what you hope.

In a heart-wrenching act of love and sacrifice, an elderly grandmother arrived at Adiedo Mixed Secondary School clutching her granddaughter’s hand—and carrying six live chickens in a tattered basket. Her mission: to plead for her granddaughter’s return to school after she had been sent home for unpaid fees. With trembling hands and a quiet dignity that moved all who witnessed it, the grandmother explained that she had no money—but these chickens, her most treasured possessions, were all she had left. Among them were her prized laying hens, her only source of daily sustenance. She offered them up without hesitation, believing that her granddaughter’s future was worth far more than eggs. In a moment that left many in tears, one of the hens laid an egg right there in the school compound—a poignant symbol of hope, divine providence, and the depth of the grandmother’s sacrifice. It was as if heaven itself was bearing witness to her act of faith. Her gesture not only settled a debt—it silenced the noise of hardship with the louder voice of love, reminding everyone present that true wealth lies not in one’s bank account, but in the heart willing to give everything for the sake of another’s tomorrow. This powerful scene captured the raw essence of resilience, dignity, and the unwavering bond between generations—an emotional testament to the lengths families will go to ensure education, no matter the cost.

The High Court of Singapore has granted Sonic Labs' request to liquidate Multichain Foundation, allowing the blockchain tech firm to recover lost funds from a 2023 exploit. According to a May 9 ruling, Justice Kwek Mean Luck gave Sonic Labs approval to wind up Multichain with KPMG Singapore as joint liquidators. Sonic Labs, formerly known as Fantom Foundation, announced its plans to request the court to dissolve Multichain in March last year, after a $210 million exploit on Multichain's in July 2023 and the subsequent shutdown of the platform. Sonic's losses in the exploit amounted to around one-third of total losses. This came after a Singapore high court ruled in favor of Sonic's legal claims against Multichain for breach of contract and fraudulent misrepresentations for losses sustained in the exploit. At the time, Sonic Labs said the decision to pursue the liquidation came after "persistent absence" of Multichain despite multiple attempts to reach the foundation's key personnel. Multichain CEO Zhaojun He was arrested by Chinese authorities months prior to the exploit, and has not made a public appearance since. Sonic Labs CEO Michael Kong again said in a Wednesday statement on X that the team was "compelled" to forcibly liquidate Multichain. "If Multichain had not hid from victims, this entire process would've been unnecessary and we would've saved more than a year," Kong said. Kong added that lost funds in Multichain's exploit should eventually be returned to users if liquidators successfully work with other parties to acquire the funds. Sonic Labs previously said that its legal case aims to provide a pathway for other Multichain users to claim lost assets.