The Importance of x402 for Stablecoin Payments

X402+ stablecoins + crypto on-chain infrastructure will gradually and continuously impact the existing payment system. Not only does it utilize stablecoins, but it also transfers money, credit, identity, and data into a parallel financial universe.

Written by: Blue Fox Notes

x402 is extremely important for stablecoin payments. Some people (such as Lincoln Murr) have compared it to a "Trojan horse." This is a very apt analogy. This Trojan horse is not just about using "stablecoins" in a simple way. Instead, it gradually influences users from three aspects, thereby reshaping the financial payment network.

Previously, for stablecoin payments, users needed to: open a wallet → connect → sign the transaction → pay the gas fee → wait for confirmation. For most non-crypto-native users, this process is too complicated, as creating a crypto wallet already excludes 90% of users.

However, the x402 process (for users) is: click on a paid content (such as a paid short drama, etc.) → the browser/wallet pops up "Need to pay 3 USDC", click "Allow" → payment is completed and the content is instantly unlocked. Users do not need to know that they are paying with a stablecoin (such as USDC), paying on a certain chain (Base), or paying to an AI agent. It feels "as smooth as using Apple Pay." For users whose wallets do not have stablecoins, the agent can advance the payment, pop up Apple Pay/credit card to instantly buy USDC for payment, and the backend automatically creates an embedded wallet (such as Privy SDK/Passkey).

Behind this simple user payment process is the shifting of all complexity to the backend, such as the agent automatically choosing the cheapest chain/exchanging stablecoins/paying for gas fees. The standardization and minimalist protocol of x402 allow any website/AI application to accept stablecoin payments from any chain by simply adding a few lines of code.

First, it unconsciously changes the landscape of the "payment network." Users think they are using the "new Internet version of Apple Pay," but in fact, the payment is routed through on-chain networks (such as Base/Arbitrum/Solana, etc.), rather than Visa, MasterCard, Apple Pay, Pix, etc.

This means that in the future, the routing, clearing and settlement, data, fees, rules, compliance, and profits of micropayments will gradually be taken over by supported public chains/L2 ecosystems, stablecoin issuers, etc., and the traditional payment network market will be partially eroded.

Second, it unconsciously changes the user's "wallet and identity." When users click on "Apple Pay-style payment," the backend can automatically create an embedded wallet for the user (such as passkey device-level self-custody/Privy custodial private key). Subsequent on-chain operations, including saving, borrowing, investing, trading, etc., can all be linked to this wallet. This is a globally universal on-chain financial wallet/identity.

Third, it unconsciously changes the "final settlement layer of currency and value." Users initially pay with fiat, which is converted to USDC and other stablecoins, and some of these stablecoins remain on-chain instead of returning to the traditional banking system. These funds on-chain can be used by AI agents to pay other AI agents; creators can convert stablecoins to ETH to participate in staking and earn interest; project parties can use them to buy government bonds to generate more stablecoins. In this way, the portion of stablecoins flowing into the chain circulates as crypto dollar liquidity, rather than flowing back to the traditional financial system.

In summary, X402+ stablecoins + crypto on-chain infrastructure will gradually and continuously impact the existing payment system. Not only does it utilize stablecoins, but it also transfers money, credit, identity, and data into a parallel financial universe. In this process, the user experience is similar to traditional Internet payment experiences. Therefore, this can truly be called a Trojan horse.