Coinbase Facilitates First AI-to-AI Crypto Transaction

Coinbase has facilitated its first cryptocurrency transactions entirely managed by artificial intelligence (AI) agents, said Coinbase CEO Brian Armstrong in a recent post on X (formerly Twitter). He described it as Coinbase’s “first AI to AI crypto transaction.”

AI agents can now perform transactions without traditional bank accounts.

According to Armstrong, in the instance, one AI agent used crypto tokens to buy AI tokens from another agent. The tokens are data strings used for machine learning between large language models (LLMs).

Rise of AI

Armstrong also pointed to the important role of cryptocurrency wallets for AI agents. Since these entities can’t have bank accounts, one of the ways for them to participate in the financial ecosystem is through crypto wallets.

He added that AI agents can now use USDC on Base to conduct transactions with humans, merchants, and other AIs instantly, globally, and for free.

“AI agents cannot get bank accounts, but they can get crypto wallets. They can now use USDC on Base to transact with humans, merchants, or other AIs. Those transactions are instant, global, and free,” said Armstrong.

Currently, AI agents struggle to complete tasks independently due to limited access to resources requiring payment. Armstrong believes the new development is a crucial step toward enabling AI to perform “useful work.”

New Ways For AI To Work

The integration of AI agents into the cryptocurrency space is still in its early stages, but it raises questions about the future of autonomous transactions in the economy.

Coinbase CEO expects a potential future of AI-driven commerce with AI-enabled checkouts. He suggested that the technology, which enables all parties, including AI, to lead to an “AI to AI economy” with major growth in the coming years.

Armstrong’s announcement came after he said earlier in August that LLMs should have AI crypto wallets. He believes that integrating crypto wallets into LLMs, which include technologies like OpenAI’s ChatGPT and Anthropic’s Claude, will allow AI agents to operate more autonomously and efficiently in various domains.

Alongside Armstrong’s call, Coinbase launched a new grant program through its Developer Platform (CDP). The program offers $15,000 in grants, with $3,000 each awarded to five projects focused on combining AI with crypto wallets.

Coinbase’s goal is to create functional AI bots using LLMs that can interface with Coinbase’s multiparty computation (MPC) wallets. The program aims to tackle the challenge of current AI systems being unable to handle bank accounts for automatic payments, which can be addressed through on-chain solutions.

The announcement of Coinbase’s first AI-to-AI cryptocurrency transaction has sparked a variety of comments and reactions from crypto community members.

Many see this transaction as a groundbreaking step in integrating AI with cryptocurrency. If successful, the development indeed allows AI agents to perform transactions autonomously, which could enhance their functionality in various applications, particularly in financial services.

However, some Reddit users expressed skepticism about Coinbase’s first AI-to-AI transactions. One user said AI might “accidentally” transfer Bitcoin to users while another stated it could “steal” small amounts from transactions over time.

Coinbase’s development is part of a broader trend of crypto firms developing solutions to allow AI agents the ability to conduct transactions on behalf of users.

Skyfire, a blockchain development firm, recently secured $8.5 million in seed funding to launch its payment network that enables AI agents to make and receive payments without human intervention.

Skyfire’s platform assigns each AI agent a digital wallet with a unique identifier. Businesses are able to deposit funds for the agent to spend within set limits. The firm said it uses safeguards like automated budgets, transaction limits, and spending history to prevent AI agents from overspending.

The company’s co-founders, Amir Sarhangi and Craig DeWitt, previously held executive roles at Ripple, where they contributed to developing the foundational technology for instant, universally accepted payment systems.