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Cloudflare Steps Into Digital Finance
Cloudflare has announced plans to launch NetDollar, a US dollar-backed stablecoin designed for instant and secure transactions across the internet. The initiative marks the company’s entry into digital finance as it seeks to address payment challenges in what it describes as the emerging AI-driven economy.
The company said that existing financial rails cannot meet the speed or automation needs of autonomous systems. By developing an internet-native stablecoin, Cloudflare intends to offer a tool for transactions that are global, fast, and reliable.
A Shift From the Old Model
For years, much of the online economy has relied on advertising and traditional bank transfers. Cloudflare’s leadership believes that this approach is increasingly unsuited for a world in which artificial intelligence plays a central role.
The company argues that the next stage of the internet will require microtransactions and pay-per-use models. This shift, it suggests, would enable compensation to flow more directly to creators and service providers, rather than being mediated through advertising-driven structures.
NetDollar is presented as a way to support such mechanisms, with the company saying it is being built to operate at internet speed and scale.
Currency for the “Agentic Web”
Cloudflare has framed NetDollar as a currency designed for what it calls the “agentic web,” where autonomous AI systems act on behalf of individuals and businesses. In this vision, an AI assistant booking a flight or a business agent releasing funds to a supplier would require immediate, seamless payment capability.
The company contends that traditional systems are not equipped to handle that kind of real-time, automated activity. A dollar-backed stablecoin, it says, could provide the infrastructure necessary for AI-driven transactions to function across borders and time zones.
Timing and Market Context
The decision to launch NetDollar comes at a time of financial strength for Cloudflare. The company has a market capitalisation of $75.8 billion and has reported year-to-date stock returns of more than 100 percent. In the second quarter of 2025, Cloudflare generated revenue of $512.3 million, surpassing analyst forecasts.
Those results, combined with gross profit margins of 76 percent and revenue growth of 27 percent year-over-year, have led several analysts to revise their outlooks upward. Citizens JMP recently raised its price target to $250 while maintaining a Market Outperform rating, and Stifel reiterated its view of strong growth potential.
Broader Implications
Cloudflare’s move underscores how technology companies outside traditional finance are increasingly positioning themselves within the digital payments sector. Stablecoins tied to the US dollar have become a growing area of experimentation, particularly as firms consider how AI systems will interact with financial infrastructure.
If implemented successfully, NetDollar could influence how new business models evolve in the digital economy, especially those involving direct payments for services rather than reliance on advertising revenue. For now, the initiative signals that one of the cloud industry’s largest players is preparing to play a role in how fintech adapts to the rise of AI-driven commerce.
