Coinbase unveils AI breakthrough, AI trading cryptocurrency for the first time

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Coinbase Achieves First AI-to-AI Cryptocurrency Trading

Brian Armstrong, CEO of the U.S. exchange Coinbase, recently announced on Twitter the first instance of artificial intelligence (AI) trading cryptocurrencies on their platform. Here's how Coinbase made this breakthrough possible.

Coinbase Introduces MPC Wallet to Facilitate AI Financial Trading

For developers currently exploring the integration of large language models (LLM), AI models, and cryptocurrency wallets for trading, Coinbase has launched the MPC Multi-Party Computation Wallet solution. In essence, this combines AI agents with cryptocurrency wallets, allowing AI agents to trade autonomously without human intervention.

AI Agents Can Have Cryptocurrency Wallets, Not Bank Accounts

Armstrong also pointed out that while AI agents cannot have traditional bank accounts, they can possess cryptocurrency wallets.

With a cryptocurrency wallet, AI agents can engage in transactions using USDC on the Base Sepolia's Ethereum-based Layer 2 network, whether with individuals, businesses, or other AI entities. These transactions are not only feeless but also instant and global in nature.

Installation Process of Coinbase MPC Wallet

1. Install the development toolkit provided by Coinbase and import the Coinbase module:

2. Create an AI agent cryptocurrency wallet:


3. To deposit ETH into the AI agent wallet on Base Sepolia, use the faucet:

4. Establish a Coinbase smart wallet for sending and receiving funds

If a user does not have a wallet, they can apply for a Coinbase smart wallet on the Coinbase exchange and receive cryptocurrency from the AI agent wallet. The smart wallet can be easily created within seconds without the need for apps or extensions, by securely generating and storing keys on the user's device.

5. Send cryptocurrency from the AI agent wallet to the user's wallet

6. Receive tokens from other AI agents or users by obtaining the default address of your AI agent wallet using the following method:

7. After transferring cryptocurrency to the user, display the wallet balance of the AI agent.

Significant Progress of AI in Real-World Applications to Drive Practical Use

Brian stated that this marks a significant step forward for AI in practical applications. Currently, if you assign a task to an AI agent and check back after a few days or hours, the job may not be completed. This is due to technological limitations, which products like devin.ai are gradually narrowing.

Challenges in AI Acquiring Resources and Tools

On the other hand, AI currently cannot acquire the necessary tools and resources through transactions. For example, they lack credit cards to use AWS, Github, or Vercel, cannot automatically book flights or hotels, are unable to pay for content behind paywalls on websites, run paid advertising campaigns on X platform, or integrate data using paid APIs.

Coinbase achieving the first AI-to-AI cryptocurrency trading signifies a significant breakthrough for AI in the financial trading domain.However, AI still faces challenges in practical applications, with technical issues remaining a major bottleneck for AI progression.