Introduction
Cloudflare, best known as a web infrastructure and cybersecurity giant, is stepping into digital finance with the launch of its own US dollar-backed stablecoin, branded “NET Dollar.” The move marks a surprising diversification for a company that has historically focused on internet security and content delivery networks. By introducing NET Dollar, Cloudflare is targeting a niche but rapidly growing market: agent-based e-commerce systems, where AI-driven platforms and decentralized networks require stable, programmable forms of money.
Why Cloudflare is making the move
The rise of AI-powered agents in e-commerce is creating demand for faster and more automated financial transactions. These autonomous agents — designed to buy, sell, and negotiate services online — require stable, interoperable currencies to operate efficiently. Traditional payment systems, with their fees and delays, are poorly suited for this use case.
Cloudflare believes its infrastructure expertise puts it in a unique position to offer a stablecoin that is fast, secure, and seamlessly integrated into the digital backbone of e-commerce. NET Dollar aims to provide low-latency settlement, strong cybersecurity, and interoperability with both blockchain-based and traditional systems.
The mechanics of NET Dollar
NET Dollar is pegged one-to-one with the US dollar and backed by reserves held in regulated US banks. Cloudflare has committed to monthly attestations to ensure transparency, mirroring industry leaders like Circle and Paxos.
Transactions will run on a hybrid blockchain model. Cloudflare is leveraging its global content delivery network to optimize transaction speed while ensuring compliance with existing financial regulations. Early documentation suggests that NET Dollar will support integration with AI commerce platforms via APIs, enabling agent-based systems to transact autonomously.
Target market: e-commerce agents
The focus on e-commerce agents sets NET Dollar apart from other stablecoins. Instead of chasing general-purpose adoption, Cloudflare is betting on the rise of agentic commerce, where bots negotiate contracts, manage supply chains, or shop for users in online marketplaces.
For example, a business might deploy AI agents to automatically restock inventory. NET Dollar would allow the agents to make payments instantly, without relying on banks or credit card processors. Similarly, consumer-facing bots could buy subscriptions or digital goods using NET Dollar without passing through traditional rails.
Competitive landscape
Cloudflare is entering a crowded stablecoin market dominated by Tether (USDT) and Circle’s USD Coin (USDC). However, its strategy differs in three key ways:
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Niche focus: Targeting e-commerce and AI agents rather than broad retail or trading.
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Infrastructure leverage: Using its existing internet backbone to provide speed and reliability.
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Enterprise partnerships: Early indications suggest Cloudflare is in talks with major e-commerce platforms and cloud providers to integrate NET Dollar as a payment option.
If successful, NET Dollar could carve out a distinct niche rather than competing head-on with existing giants.
Regulatory backdrop
Launching a stablecoin in the United States comes with significant regulatory scrutiny. Cloudflare has reportedly engaged with the Treasury Department, the SEC, and state regulators to ensure NET Dollar complies with payment stablecoin guidelines.
By limiting its initial use cases to business-to-business and agent-based commerce, Cloudflare may avoid some of the risks associated with retail-facing tokens. Still, regulators will be watching closely, especially given Cloudflare’s size and influence in the internet ecosystem.
Benefits for businesses
For enterprises, NET Dollar offers several advantages:
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Cost savings: Lower fees compared to card networks.
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Speed: Instant settlement across borders and time zones.
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Programmability: Smart contract functionality tailored for AI and e-commerce agents.
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Security: Cloudflare’s global infrastructure offers built-in DDoS protection and cyber resilience.
These benefits could make NET Dollar especially appealing to businesses already relying on Cloudflare’s other services.
Risks and challenges
Despite the potential, NET Dollar faces several challenges:
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Adoption: Convincing businesses to adopt a new stablecoin is not easy, especially when USDT and USDC are already entrenched.
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Regulation: The stablecoin sector is under heavy scrutiny, and any misstep could lead to restrictions.
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Trust: Cloudflare must prove it can manage reserves and financial operations with the same rigor it applies to internet security.
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Market volatility: Although pegged to the dollar, broader crypto volatility could impact confidence in stablecoins as a whole.
Implications for the stablecoin market
Cloudflare’s entry highlights how stablecoins are no longer just the domain of crypto-native companies. Tech giants are increasingly seeing stablecoins as tools to expand into finance, much like how PayPal launched its own dollar-backed token.
If NET Dollar succeeds, it could inspire other infrastructure companies — from cloud providers to logistics platforms — to experiment with proprietary stablecoins tailored to their ecosystems.
Conclusion
Cloudflare’s launch of NET Dollar marks a new phase in the evolution of stablecoins, where specialized digital currencies are designed for specific industries. By focusing on agent-based e-commerce, Cloudflare is betting on the next wave of internet innovation and positioning itself as both a tech and financial player. While challenges around adoption, regulation, and trust remain, NET Dollar could be the prototype for a new generation of stablecoins built not for speculation, but for utility in the digital economy.
