Google Launches AI Payment Protocol with Stablecoin Support in Coinbase Partnership
Google’s latest payment protocol integrates stablecoin support, partnering with Coinbase and over 60 organizations to enable direct, secure AI-to-AI transactions and bridge traditional finance with emerging digital asset systems.
Google has launched a new open-source AI payment protocol, Agentic Payments Protocol (AP2), allowing AI systems to make secure, compliant transactions using both traditional payment methods and stablecoins. The initiative, developed with Coinbase and over 60 organizations including Salesforce and American Express, reflects Google's growing involvement in decentralized finance. Google Cloud already accepts stablecoin payments via PayPal's PYUSD and views stablecoins as a major upgrade to global payments. Stablecoins now process settlements totaling $1.39 trillion monthly, with market size exceeding $280 billion as of early 2025. U.S. banks have raised concerns over potential deposit outflows, while Coinbase argues stablecoins strengthen the dollar internationally.
- Stablecoin: A cryptocurrency pegged to a stable asset, such as fiat currency, aimed at minimizing price volatility.
- Agentic Payments Protocol (AP2): Google's new open framework that enables secure, compliant transactions between AI agents and merchants using stablecoins and traditional payment methods.
- PYUSD: PayPal's U.S. dollar-backed stablecoin used for digital transactions and payments.