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Algorand launches AC2 to let AI agents request user approvals without exposing private keys

User approves an AI action through a secure wallet, glowing encrypted link to an AI agent in Algorand-inspired colors.

Algorand Foundation has launched AC2, an open protocol designed to make AI agent approvals more secure by keeping private keys under the user’s control. In the foundation’s public announcement, AC2 is described as a standard for direct, encrypted communication between users and AI agents that lets agents request signing actions without handing over wallet access.

The launch centers on a familiar problem in AI-driven workflows: agents may need to sign payments, code commits or other digital actions on a user’s behalf, but the surrounding messaging tools do not provide cryptographic verification or scoped approval. Algorand says AC2 is meant to close that gap by allowing the user to review and approve each requested action through their own wallet interface.

How AC2 is described to work

According to the foundation, AC2 establishes an end-to-end encrypted WebRTC connection between a user’s wallet or app and an AI agent. When the agent needs authorization for an action such as a payment, git commit or API request, it sends a signing request through AC2. The user then approves the action directly, while the private key remains with the user.

The announcement also says the protocol is blockchain-agnostic and open source, with both the specification and a reference implementation now available. Algorand framed AC2 as a way to support broader “agentic” workflows without requiring users to surrender full control of their accounts.

The foundation said the protocol can be extended for different message types and signing formats, which it says would make it usable in settings where agents need limited, user-approved authority rather than unrestricted access.

For now, the launch is best understood as a security and communications layer for AI agents rather than evidence that AI payments or agent-driven commerce are already widespread. The key change is narrower but concrete: users are meant to approve exactly what an agent can sign, instead of relying on chat-based instructions that can be easier to spoof or misread.