Key facts
- XDC Network has launched XDC AI to facilitate payments by AI agents.
- The platform uses the x402 payment standard and gasless USDC settlement.
- AI agents can autonomously pay for services, book tickets, or order items like coffee.
- The system aims to bridge the gap between AI recommendations and autonomous actions.
- XDC AI integrates compliance and risk controls for agent transactions.
The emerging 'agentic economy,' where AI agents act on behalf of users to perform tasks and transactions, is facing a critical gap: the inability of these agents to make payments. While AI can currently recommend products or plan itineraries, the ability to execute financial transactions remains largely unfulfilled. XDC Network aims to close this gap with its new product, XDC AI.
XDC AI leverages the open x402 payment standard, which revives the unused HTTP '402 Payment Required' status code. This standard allows clients, including autonomous AI agents, to settle payments for services directly within the same request, bypassing the need for traditional accounts, API keys, or human sign-off. The system pairs this with 'gasless' USDC settlement, meaning users do not directly incur network fees for these transactions, enabling AI agents to pay per request at sub-cent fees.
Co-founder Atul Khekade explained that current AI systems often reside in a 'knowledge layer,' focusing on recommendations rather than actions due to the absence of real-time settlement, compliance, dispute resolution, and a trusted layer for AI transactions. XDC AI is designed as shared infrastructure, allowing businesses like coffee shops or travel companies to build 'agentic applications' on the network.
XDC Network, launched in 2019 and co-founded by Khekade and Ritesh Kakkad, is an EVM-compatible Layer-1 blockchain that aligns with the ISO 20022 messaging standard used in traditional banking. Its focus has been on trade finance and real-world asset tokenization. XDC Tech, the U.S.-based institutional arm, has integrated with Stripe's Bridge to incorporate stablecoin settlement, positioning XDC as a potential settlement layer for the agentic economy.
The company recently demonstrated its XDC AI marketplace in New York, attracting over 100 industry representatives. The demonstration showcased how AI agents could autonomously order coffee or book tickets, highlighting the potential for AI to transact at machine speed. Khekade emphasized that XDC AI includes built-in risk compliance and spending limits, crucial for the safe operation of autonomous software.