Google is advancing the integration of artificial intelligence (AI) with digital currency by launching a new open-source protocol that enables AI applications to facilitate payments. This initiative supports stablecoins, which are digital tokens tied to fiat currencies like the U.S. dollar, as noted in a press release.
To implement stablecoin rails, Google collaborated with Coinbase, a U.S.-based cryptocurrency exchange that is building its own AI-integrated payments system.
The collaboration also involved the Ethereum Foundation and over 60 other organizations, including Salesforce, American Express, and Etsy, to address traditional finance scenarios.
This effort builds upon Google’s previous initiative to set a standard for “AI agents.” These digital agents could eventually perform intricate tasks, such as negotiating mortgages or shopping for apparel, without direct human intervention.
In April, Google introduced a protocol aimed at standardizing communication between agents. The recent update extends this framework to cover financial transactions, focusing on secure payments that are interoperable and aligned with the human user’s intent.
Google’s initiative highlights a growing trend within the stablecoin market. The oversubscribed IPO of USDC-issuer Circle earlier this year indicated strong investor interest, with some arguing that stablecoins represent a “monetary revolution in progress.”
Data from DefiLlama reveals that $289 billion worth of stablecoins are currently in circulation, up from $205 billion at the start of the year.
