The implementation seeks to automate DeFi protocols, a sector where Cardano aims to grow.
The Cardano network has taken a significant step toward creating a new agent economy. It has begun the integration of the x402 payment standard. This development, announced by the Masumi team, is designed to allow Artificial Intelligence (AI) agents and bots to conduct transactions on the blockchain autonomously, without the need for direct human intervention.
The x402 standard was initially developed by Coinbase and expanded with partners from the web ecosystem. Its function is to revive the concept of automated micropayments on the internet, applying this idea directly to the blockchain.
For this implementation, the Masumi team has enhanced x402 by adding a “trust layer.” This layer integrates crucial elements such as identity, reputation, transparent auditing, and refund mechanisms. The ultimate goal is to transform Cardano into the primary financial infrastructure for an economy where autonomous systems can trade, collaborate, and pay each other seamlessly.
To demonstrate the viability of the x402 standard on Cardano, a Proof of Concept (PoC) is already active. Users can participate in a public demo by minting a test memecoin by paying 2 USDM and a small amount of ADA. The Masumi team is confident that this integration will allow for the complete automation of decentralized finance (DeFi) protocols, covering everything from token swaps to lending and staking, all without the user interacting directly with smart contracts.
This progress is particularly relevant given that Cardano’s DeFi ecosystem still lags behind its competitors. According to data from DefiLlama, although Cardano’s market capitalization is $36.2 billion, its total value locked (TVL) in DeFi is $290.4 million, with only $36.2 million in stablecoins. In contrast, Ethereum and Tron handle $163 billion and $79 billion in stablecoins, respectively.
The slow rollout of DeFi has been a source of criticism, even from Charles Hoskinson, who questioned the Cardano Foundation’s marketing spend ($15 million in 2024, including a sponsorship deal with FC Barcelona). Seeking to reverse this, in October 2025, the Cardano community approved an additional $33 million in ADA to boost stablecoin liquidity for DeFi projects, an effort that the implementation of the x402 standard on Cardano comes to complement.
