Quick Read
- Google launched an open AI payments protocol supporting stablecoins.
- Coinbase, Ethereum Foundation, and over 60 companies contributed to the development.
- The protocol bridges legacy card systems and crypto payments.
- Stablecoin adoption surged after the U.S. GENIUS Act established federal regulation.
- Stablecoin market cap could reach $1.2 trillion by 2028, per Coinbase Institutional.
The Dawn of AI-Powered Money: Google’s Vision Takes Shape
On September 16, 2025, Google unveiled an open payments protocol designed to seamlessly unite artificial intelligence (AI) applications with the world of digital finance. In a move that is already sending ripples through the tech and crypto sectors, Google teamed up with Coinbase, the Ethereum Foundation, and a coalition of more than 60 industry players—including American Express, Salesforce, and Etsy—to build a system that could fundamentally change how money moves online.
The new protocol isn’t just another payment rail. It’s a bridge between legacy card networks and the rapidly evolving universe of stablecoins—digital assets pegged to real-world currencies like the U.S. dollar. According to James Tromans, Google’s head of Web3, this initiative was engineered “from the ground up” to ensure compatibility with both traditional payment systems and future-facing crypto innovations.
From Card Networks to Crypto: A Unified Ecosystem
Historically, payment systems have operated in silos. Credit cards, bank transfers, and digital wallets rarely ‘talked’ to blockchain networks. Google’s protocol changes this equation. By building interoperability into its core, the platform allows AI-powered apps—think personal shopping bots, mortgage advisors, and even algorithmic investment managers—to initiate secure, real-time transactions using cards, debit accounts, or stablecoins.
Erik Reppel, head of Coinbase Developer Platform Engineering, emphasized that interoperability was not an afterthought. “We wanted AI agents and payment protocols to communicate naturally, whether they’re using fiat or stablecoin infrastructure,” Reppel told Fortune. This means developers can build financial tools that work across old and new payment rails, unlocking new possibilities for automation, personalization, and global access.
Stablecoins: The Engine of Digital Commerce’s Next Phase
The timing of Google’s move is no coincidence. The stablecoin market has been on a tear, fueled in part by the U.S. government’s recent passage of the GENIUS Act—the first federal regulatory framework for stablecoin issuance. Since July 2025, adoption has surged. Circle, issuer of USDC, saw its shares spike after an oversubscribed IPO, and Tether announced its first U.S.-regulated stablecoin.
According to Coinbase Institutional, stablecoin market capitalization could reach $1.2 trillion by 2028. Consulting giant McKinsey projects it could exceed $400 billion by the end of 2025 and approach $2 trillion in just a few years. Data from DefiLlama shows $289 billion in stablecoins are already circulating, up sharply from $205 billion at the start of the year.
This explosive growth is not just about speculation. Stablecoins are increasingly seen as the backbone of a new monetary order, offering low-cost, borderless transactions and programmable money for both consumers and businesses. For Google, integrating stablecoins into its payments protocol isn’t just a technical upgrade—it’s a strategic bet on the future of commerce.
AI Agents: Automating Finance for the Next Generation
Underlying Google’s protocol is a broader ambition: empowering AI agents to handle complex, real-world financial tasks. In April, Google rolled out a communications protocol for agent-to-agent interaction, allowing specialized AI algorithms—sometimes called ‘agents’—to negotiate, transact, and serve users autonomously.
The latest update extends this framework into payments, enabling agents to safely transfer money between themselves and on behalf of users. Imagine an AI-powered mortgage advisor comparing loan offers, negotiating terms, and seamlessly executing the payment. Or a shopping bot selecting and purchasing clothing online, all without manual intervention. By making financial transactions secure and user-centric, Google aims to ensure that AI-driven automation aligns with human intent and regulatory safeguards.
Industry Collaboration: Building Trust and Scale
Google’s protocol is notable not just for its technology, but for the scale of its partnerships. By working with the Ethereum Foundation, Coinbase, and more than 60 other organizations, Google is seeking to standardize how payments work in the AI era. The goal is to avoid fragmentation and build trust—critical ingredients for mass adoption.
American Express, Salesforce, and Etsy are among the traditional finance and commerce giants lending their expertise. Their involvement signals that stablecoins and AI payments are no longer fringe technologies, but are fast becoming central to the infrastructure of global commerce.
Regulatory Clarity: The GENIUS Act’s Ripple Effect
The GENIUS Act’s passage in the U.S. has been a game-changer. For years, uncertainty over crypto regulation kept many mainstream companies on the sidelines. Now, with a clear federal framework, the doors are open for innovation and integration. American Express Travel, for example, launched its own blockchain-based mobile app just as Google rolled out its protocol.
The regulatory clarity provided by the GENIUS Act is expected to fuel further adoption, with stablecoins moving from speculative assets to regulated, mainstream financial instruments. Industry analysts believe this could pave the way for more tech giants—and even governments—to experiment with blockchain-based payment systems.
The Road Ahead: Challenges and Opportunities
While Google and Coinbase’s partnership marks a major milestone, the journey is far from over. Security, privacy, and user experience remain paramount. Ensuring that AI agents act in users’ best interests, while complying with complex global regulations, will be a delicate balancing act.
But the momentum is undeniable. By bringing together AI, blockchain, and traditional finance, Google’s protocol could redefine what it means to move money in the digital age. Developers will be able to create smarter, more responsive financial applications. Consumers may gain access to faster, cheaper, and more personalized payment experiences. The boundaries between fiat and crypto, human and machine, are blurring—and the world is watching.
Google’s collaboration with Coinbase to launch an open AI payments protocol signals a tectonic shift in financial technology. By marrying stablecoin infrastructure with artificial intelligence and legacy systems, the initiative could set new standards for interoperability, security, and user agency in digital commerce. The true impact will depend on how developers, regulators, and consumers embrace this new frontier, but the foundation for a transformative era is now firmly in place.