Google, Coinbase Aim for $289 Billion Stablecoin Market via AI Payments

- Google and Coinbase introduced the Agent Payments Protocol (AP2) to enable seamless AI application payments. - The collaboration with industry leaders aims to expand stablecoin adoption. On September 16, 2025, CoinDesk reported that Google and Coinbase jointly launched the Agent Payments Protocol (AP2). This new open-source system facilitates seamless payments for artificial intelligence (AI) applications and supports transactions using credit cards, debit cards, and stablecoins, such as Tether (USDT) and USD Coin (USDC). Google, Coinbase, the Ethereum Foundation, and over 60 other companies collaborated to develop AP2, including financial and technology giants such as American Express, Mastercard, PayPal, and Salesforce. The protocol bridges traditional payment methods with emerging stablecoin technology, addressing the growing need for interoperability in digital transactions. The launch aligns with the rapid expansion of the stablecoin market, which grew from a $205 billion capitalization to $289 billion in 2025. This growth is partly driven by the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (GENIUS Act), which provides a clear regulatory framework for stablecoin issuance in the United States, spurring further investment. Consequently, Coinbase Institutional and McKinsey project that the stablecoin market cap could reach between $1.2 trillion and $2 trillion by 2028. AP2 aims to revolutionize AI-to-AI interactions by enabling autonomous digital agents to perform advanced financial activities, such as online shopping or negotiating mortgages, without constant human oversight. The protocol emphasizes security, interoperability, and user alignment in these transactions, showcasing its potential to standardize and accelerate automated financial ecosystems. Market data from September 16 at 19:13 UTC shows Tether (USDT) trades at $1, with its 24-hour trading volume increasing by 0.019%. Over the same period, USD Coin (USDC) also trades at $1, while its volume declined by 0.014%. Both stablecoins remain central to the adoption and utility of the Agent Payments Protocol.