Cloudflare has announced the launch of NET Dollar, a US dollar-backed stablecoin designed to support payments within the emerging 'agentic web,' where autonomous AI agents conduct transactions on behalf of users.

The stablecoin aims to modernize financial infrastructure by leveraging Cloudflare's global network to enable fast, efficient money transfers, addressing the inadequacies of traditional systems for AI-driven automation.

Industry analysts are optimistic about Cloudflare’s growth prospects, especially as the company explores integrating stablecoins into AI and web services, with some raising price targets following recent financial results.

The entry of traditional tech giants into the digital asset space is expected to influence future market dynamics and set new standards for online payments.

This initiative positions Cloudflare among fintech firms aiming to disrupt cross-border payments, a market expected to reach $1 trillion in transaction volume by 2030, driven by institutional adoption.

This move aligns with a broader industry trend, as major companies like Stripe and PayPal are also developing blockchain-based stablecoins, signaling increasing mainstream adoption.

Regulatory developments in Europe and the US have contributed to rising stablecoin adoption, with the market nearing $300 billion, and Cloudflare emphasizes compliance with U.S. standards amid evolving regulations.

The involvement of publicly traded tech firms like Cloudflare and Coinbase in stablecoins could reshape the ecosystem by introducing new strategies, fostering collaboration, and potentially disrupting traditional payment providers.

The launch is poised to impact industries such as e-commerce, AI, and payment processing, offering new opportunities for microtransactions and challenging established players like Visa and Mastercard.

Historically, stablecoins have evolved into vital global financial tools, and NET Dollar could challenge traditional payment giants by enabling faster, cheaper cross-border transactions.

CEO Matthew Prince explained that this new internet model will focus on fractional payments and microtransactions, incentivizing the creation of original and valuable content.

Industry projections suggest the stablecoin market could grow to $4 trillion by 2030, supporting transaction volumes up to $200 trillion, with some speculating bank tokens might surpass stablecoins in the future.

Cloudflare’s NET Dollar follows other recent stablecoin launches worldwide, reflecting a global surge in digital assets for cross-border and local transactions.