Circle Joins x402 Foundation to Standardize USDC Payments

Circle has joined forces with the x402 Foundation to standardize internet-native payments using USDC. The protocol embeds payments directly into web requests using the long-dormant HTTP status code 402, reserved decades ago for 'Payment Required'. The foundation launched on April 2, 2026, under the Linux Foundation's governance.

The x402 protocol allows a client to programmatically send payment in USDC when a server responds with a 402 status code. This eliminates the need for login, account creation, and stored credit card information. The protocol charges zero fees at the protocol level, only costing users what the underlying blockchain network costs.

Circle has been actively contributing to the x402 protocol's development since October 2025, focusing on cross-chain USDC settlements and micropayment batching. Circle's Chief Commercial Officer Kash Razzaghi emphasized the importance of creating 'open, programmable financial infrastructure for the internet.'

The transition from a Coinbase side project to an industry standard has gained notable traction. The Solana Foundation facilitated approximately 65% of the protocol's early transaction volume, suggesting that Solana is a natural fit for high-frequency, low-value payments.