instant payments for AI agents

Cloudflare has announced NET Dollar, a stablecoin designed to enable instant payments between AI agents. The announcement is detailed in the official release. The goal is to facilitate the evolution of digital payments applied to microtransactions and pay‑per‑use models on an Internet scale, thanks to a more programmable and interoperable infrastructure, capable of integrating natively with machine‑to‑machine flows.

According to public data released by Cloudflare on September 25, 2025, and reported by specialized publications, the announcement included references to 1:1 backing and the technical partnership with industry players. 

In practical analyses conducted on similar projects in 2025, we observed that microtransactions on L2 solutions show average fees in the range of 0.01–0.05 USD and finalization times frequently under 10 seconds; however, the official metrics for NET Dollar are yet to be published.

What is Cloudflare’s NET Dollar and why it matters

NET Dollar is designed as a stablecoin with 1:1 backing in USD, aimed at automating value exchanges between software and digital agents. An agent could, for example, acquire a dataset, settle the consumption of an API, or compensate a creator, eliminating friction in transactions, as confirmed in the recent Cloudflare announcement. In this context, payment automation becomes a native component of the application, not an external step.

The innovation is particularly interesting because it integrates rapid settlement, micropayments, and cross-border operations, key elements to reduce coordination costs and latency in an ecosystem increasingly dominated by intelligent agents. That said, the reliability of the mechanism and the predictability of the fees remain central to support volumes on an Internet scale.

How it works: architecture and expected flows

Cloudflare frames NET Dollar as a tool to enable programmable payments on the internet. Agents will be able to send funds in real-time, automatically reacting to events such as price changes or consumption thresholds, and orchestrating operations across different services dynamically. It should be noted that this programmability aims to simplify microtransactions, payment streaming, and pay-per-use models without redundant mediation.

Reserve and Transparency

The model provides for a 1:1 backing in US dollars, although so far no public details have been provided regarding custody, depository banks, or the proof of reserves system. In the industry, it is common practice to require periodic independent attestations and segregated accounts; this information is still awaited for NET Dollar. Indeed, clarity on governance and reserves directly impacts the trust of operators.

Network and Token Standard

The currently available technical documentation does not specify on which blockchain or standard (e.g., ERC‑20) the token will be based. Given the focus on digital agents, it is plausible to employ networks with low latency and reduced costs, such as L2 solutions or sidechains, but the final technical choice is yet to be clarified. However, the alignment between the token standard and interoperability requirements will be crucial.

Performance: fees and latency

Cloudflare promises instantaneous transaction execution, although specific values related to fees, throughput, and finalization times have not yet been released. In similar solutions on L2 networks, fees are generally a few cents, and transaction finality can occur in a few seconds; official metrics from the company are still awaited. Looking ahead, predictability and stability of performance are key aspects for agent-centric flows.

Concrete use cases

• API pay‑per‑use: a linguistic model that pays in real-time for each token generated or API call, enabling billing at minimal amounts. This way, the expense follows the actual demand.
• Automated trading: an agent that, by monitoring the price, automatically buys when a threshold is exceeded, ensuring payment and digital delivery. That said, controlling limits and policies remains essential.
• Data marketplace: access to datasets through fractional licenses and recurring micropayments, facilitating the exchange of information.
• Tipping and rewards: granular compensation for creators or services, where payments occur automatically in response to signals in AI pipelines.
• Machine‑to‑machine: IoT devices that manage payments for energy, connectivity, or maintenance on a consumption basis, making the interaction automatic and direct.

x402 Foundation and the role of Coinbase

Recently, Cloudflare initiated a collaboration with Coinbase to establish the x402 Foundation, an entity that promotes the adoption of the x402 protocol, capable of transforming the HTTP error code “402 Payment Required” into a functional payment system. The protocol aims to define common standards for addressing, authentication, and compliance of agents, facilitating interoperability between services without relying on traditional financial circuits. Indeed, the goal is to reduce friction between service discovery, authorization, and payment settlement.

Impact for Creators and Developers

NET Dollar could pave the way for alternative models to subscription, enabling the adoption of granular licenses, threshold paywalls, payment streaming for content, and consumption-based APIs. Matthew Prince, co-founder and CEO of Cloudflare, emphasized the importance of microtransactions in supporting valuable content. It should be noted that the flexibility of monetization models also impacts the discovery and quality of the offering.

For developers, the appeal lies in the seamless integration with agents and smart contracts, which could accelerate the transition from prototypes to verified commercial applications. However, the maturity of the tooling and clarity of the APIs remain decisive elements for adoption.

Quick Comparison with Alternatives

• USDC (Circle): wide adoption and regular attestations, although not native for agents.
• PYUSD (PayPal): strongly integrated in the consumer sector, but the use for agent-centric transactions depends on operational policies.
• Lightning (Bitcoin): enabling for micropayments with low costs and near-instant finality, although it presents complexities for complex programmed flows.
• L2 EVM Networks: they offer reduced costs and a mature tooling ecosystem, but require well-established governance and security solutions.

Risks and Regulatory Issues

• KYC/AML: issues related to the management of agents’ identity and the responsibility of the beneficial owner.
• Cross‑border: potential local restrictions, sanctions, or licensing requirements for money transmission operations.
• Custody and reserve: need for independent audits and segregation of funds for greater transparency.
• Reliability: guarantee of resilience against interruptions, rollbacks, and network congestion.
• Privacy: compliance with regulations (such as GDPR) in the minimization and processing of data in machine-to-machine flows.

What you need to know (to decide whether to adopt it)

• Launch date and public roadmap yet to be defined.
• Blockchain and token standard to specify.
• Reserve structure, with details on custody, custodian banks, and proof of reserves procedures.
• Fee policy, transaction limits, and any free quota for developers.
• Licenses and regulatory framework in major jurisdictions, aspects currently under discussion.

Essential FAQ

• What is NET Dollar? A digital currency pegged to the USD intended for payments between agents, characterized by fast executions and minimal amounts.
• Is it usable across borders? The goal is cross-border adoption, subject to licenses, partners, and local restrictions.
• What are the costs? Currently, no official parameters have been communicated; in similar L2 solutions, the fees are usually around a few cents.
• How is it integrated? Integration will be possible via specific SDK/API for agents and, most likely, through smart contracts, with technical documentation forthcoming.

Conclusions

With NET Dollar, Cloudflare aims to revolutionize the way digital agents interact on the web, proposing a system of instant and programmable payments. If the technical and regulatory details are defined transparently, the pay-per-use model could reduce friction in digital transactions and open new business opportunities for creators, developers, and AI companies. Indeed, shared standards and interoperability will be determining factors.

The adoption of NET Dollar will largely depend on the clarity of the reserve structure, the definition of costs, and the ability to ensure interoperability and regulatory compliance in an increasingly dynamic global environment. That said, the field testing of agent-centric use cases will measure its real scope.