- Masumi’s blockchain team is testing x402 support on Cardano.
- The x402 protocol enables AI agents to make autonomous transactions.
- Cardano’s DeFi sector lags other major rivals.
Cardano, the blockchain behind ADA cryptocurrency, just took a big step towards integrating artificial intelligence into the blockchain.
Its developers have started to integrate Coinbase’s x402 payment standard into the blockchain. The aim is to enable so-called AI agents to make onchain payments using Cardano’s native ADA coin and the blockchain’s USDM stablecoin.
The push originates from the Masumi blockchain team, which is building on Cardano and implementing x402 support.
“This is very big for Cardano,” Charles Hoskinson, Cardano’s founder, said in a Monday post on X.
If the integration gains traction, it could mark a long-awaited advancement in onchain automation and utility for Cardano.
The x402 protocol allows bots to manage blockchain transactions without centralised oversight or human intervention.
On Cardano, the integration could allow AI agents to pay for token swaps or more complex DeFi transactions, such as staking and lending, potentially automating an entire class of smart contracts on the blockchain.
And Cardano’s onchain sector needs a boost.
Despite its $24 billion market value, Cardano’s DeFi market only holds about $322 million in investor funds. That’s considerably lower than the onchain markets of major blockchains like Ethereum and Solana.
Even layer-2 networks like Base and Optimism possess more onchain value than Cardano.
And Hoskinson has lamented the glacial pace of Cardano’s DeFi progress.
Hoskinson has criticised the Cardano Foundation, a Swiss non-profit organisation that promotes the blockchain, for being slow and ineffective in advancing the DeFi sector of the Cardano chain.
In 2024, the Foundation spent $15 million to encourage activity on the chain, including a partnership with Spanish Football Club FC Barcelona.
Earlier in October, the Cardano community approved an initiative to increase the chain’s DeFi stablecoin liquidity by over $33 million in ADA.
Cardano’s stablecoin market is valued at around $36 million, according to DefiLlama data. Major blockchains such as Ethereum and Tron have $164 billion and $79 billion, respectively.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@dlnews.com.
