What to know:

• Google's updated open-source protocol enables AI applications to send and receive payments, including support for stablecoins pegged to fiat currencies like the U.S. dollar.

• Coinbase, the Ethereum Foundation, Salesforce, American Express, Etsy, and others are involved to ensure the system covers both crypto and traditional finance.

• The initiative coincides with rising adoption — $289 billion worth of stablecoins are in circulation, up from $205 billion at the start of the year.

Google is taking a step toward merging artificial intelligence (AI) and digital money, rolling out a new open-source protocol that lets AI applications send and receive payments, which includes support for stablecoins, digital tokens pegged to fiat currencies such as the U.S. dollar, according to a press release.

To incorporate stablecoin rails, Google teamed up with U.S.-based crypto exchange Coinbase, which has been developing its own AI-integrated payments infrastructure.