Coinbase Activates UpTo Scheme for x402

Coinbase Developer Platform has activated the Upto scheme for the x402 protocol. This upgrade replaces the old fixed fee model with usage-based pricing for agentic AI compute demands. It is designed for variable-cost services like LLM inference, compute, and data queries. Previously, fixed prices were suitable for deterministic APIs but hindered costs that vary by token count, processing time, or query complexity. Upto allows sellers to set a maximum price and buyers to authorize up to a certain limit; the server only charges based on actual cost, saving users from overpaying.

x402 Protocol and Upto Scheme Details

• Usage-Based Pricing: Costs are dynamically calculated based on token count and processing time.
• Gasless Payments: EVM-based ERC20 tokens are processed completely gas-free with CDP Facilitator.
• Flexibility: Buyers approve up to a limit, eliminating the risk of overpayment.

Upto is EVM-based and supports all ERC20 tokens. The x402 protocol, developed by Coinbase, was transferred to the Linux Foundation this month; companies like Google, Microsoft, and Amazon Web Services hold shares through the x402 Foundation. The protocol peaked at 13.7 million weekly transactions in November 2025 but declined in 2026; only 112.708 transactions were recorded in the last week of March. This development could accelerate innovative payments in EVM-compatible ecosystems like BTC detailed analysis.

Source: Coinbase Developer Platform

The Importance of x402 Upto Scheme in the BTC Ecosystem

x402 provides cost optimization in high-volume crypto transactions like BTC futures. The gasless structure for BTC-based tokens in AI compute demands offers advantages to developers and increases efficiency during market fluctuations.

Frequently Asked Questions about x402 Protocol and Upto

What is the x402 protocol? A usage-based payment protocol similar to HTTP for AI services.

How does the Upto scheme work? Approval is given up to a maximum limit, and the actual cost is charged.

Is x402 compatible with BTC? Yes, it integrates into the BTC ecosystem with EVM-based ERC20 support.