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Block has joined the x402 Foundation and added Lightning Network support to the x402 payment protocol. The company expects the network to be used for fast, low-cost payments that AI agents can make autonomously.
x402 allows software to pay for access to APIs, data and other digital services without human involvement. If an AI agent requests a paid resource, the server sends payment instructions, after which the agent can automatically complete the transaction and gain access to the service.
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Block considers Lightning well suited to this use case because of its low fees and ability to process large numbers of small payments. Steve Lee, head of Bitcoin development initiative Spiral, said AI agents could eventually make billions of micropayments, a scenario traditional payment systems are less suited for.
Until now, a significant share of activity through x402 has involved stablecoins. According to Circle, USDC accounted for 99.3% of the protocol payment volume tracked by the company in the second quarter. Adding Lightning gives developers another option to settle directly in Bitcoin.
x402 itself is already being used well beyond isolated experiments. According to its website, the protocol processed around 75.4 million transactions worth $24.2 million over the past 30 days, involving more than 94,000 buyers and 22,000 sellers. These figures refer to x402 as a whole, not specifically to Bitcoin Lightning.
x402 was originally developed by Coinbase before being placed under the Linux Foundation. Organizations involved in developing the standard include Amazon Web Services, Google, Coinbase, Mastercard, Visa, Stripe, Circle, Ripple, Shopify and the Solana Foundation.
For Block, the move extends its broader work on payments for AI. The company already participates in the Universal Commerce Protocol and other projects related to autonomous software. Block has not yet provided a timeline for bringing Lightning-based x402 payments directly to Square, Cash App or Bitkey.
Block’s interest in such payments comes as AI agents become more capable. More companies are working on systems in which these programs can not only search for information or products, but also pay for services, book trips and make purchases on a user’s behalf.
Technology and payments companies are building dedicated infrastructure for this. Google is developing the Universal Commerce Protocol, Visa and Mastercard are working on payments for AI agents, while x402 provides a standard that lets software pay for access to APIs, data and other digital services. Block’s support for Bitcoin Lightning adds another payment option to that ecosystem.
Block recently went through mass layoffs.