Block joined the x402 Foundation and added Lightning Network support to the x402 protocol for payments initiated by AI agents.
U.S. FinTech company Block joined the x402 Foundation, which develops an open payment standard for AI agents. The company also integrated Bitcoin payments via the Lightning Network into the x402 protocol, with plans to use the network for instant, low-cost micropayments.
The x402 protocol enables payments directly over HTTP, including automated transactions initiated by AI agents. The standard is developed under the Linux Foundation’s governance and isn’t tied to a specific payment network or currency.
Block plans to contribute to the development of x402 as core payment infrastructure for agentic commerce. The company expects a unified, open protocol to enable:
- sellers to accept payments from new customers and AI agents acting on their behalf without separate integrations;
- AI agents to pay for goods and services on users’ behalf, as well as independently pay for services they need;
- BTC to be used for high-volume, everyday micropayments that could become more common as agentic commerce develops.
Block views the Lightning Network as suitable infrastructure for large volumes of small transactions because the network is designed for fast, low-cost payments. The company expects the growing use of AI agents to generate significant volumes of these transactions.
Steve Lee, head of Spiral, Block’s division focused on developing the Bitcoin ecosystem, said AI agents could potentially make billions of small payments that require instant, low-cost, and open payment infrastructure. According to Lee, integrating the Lightning Network with x402 should expand the use of BTC for everyday payments, including transactions conducted by autonomous agents on users’ behalf.
Joining the x402 Foundation continued Block’s strategy of developing Bitcoin-based payment infrastructure. The company has been expanding the use of cryptocurrency across its commercial products. Square, Block’s payment platform, integrated Bitcoin payments into its POS terminals and later expanded BTC payment acceptance through merchant terminals in the U.S.
Block is also developing infrastructure solutions for the Bitcoin ecosystem. The company previously completed development of a 3-nanometer chip for BTC mining. The Lightning Network integration with x402 extends this effort into payment infrastructure for AI agents.
In the coming months, Block plans to continue developing Lightning Network support for x402, participate in the x402 Foundation’s working groups, and build open tools for agentic commerce.
