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Coinbase Introduces 'Upto' for x402 to Enable Usage-Based AI Payments

The shift aims to make AI commerce pay-as-you-go under neutral, industry-led stewardship.

Overview

  • Coinbase Developer Platform announced Upto for x402, letting sellers set a maximum price and letting buyers preapprove a spending cap for each request.
  • After a task completes, the server measures tokens used or compute time and charges the exact amount instead of a flat fee.
  • The upgrade runs on an Ethereum Virtual Machine setup that supports all ERC-20 tokens and uses the CDP Facilitator so users do not pay gas.
  • Coinbase said this removes a pricing bottleneck that blocked variable-cost services like large language model inference and complex queries.
  • The protocol now operates under the Linux Foundation and the x402 Foundation, and Blockonomi reported the change seeks to revive usage that fell in early 2026.