When I first came across Kite, my first reaction was: What? Giving AI a wallet? That's a bit far-fetched, isn't it? Aren't those just little programs that can automatically order takeout or compare prices? Why do we need to set up a bank for them separately?
But after thinking about it for a few days, I slowly started to understand that this isn't just nonsense. Today's AI is becoming increasingly capable; it can not only chat with you but also go off to compare prices, negotiate, and book flights. But here's the problem: if it can spend money on its own, do I really need to give it my Alipay password? Do I have to personally approve every payment of one dollar? That's not realistic either.
Kite is solving this awkward situation. It is not just patching our current payment systems but is directly building an economic system for AI from scratch. You can think of it as a highway specifically for AI: transaction speeds are extremely fast, and fees are nearly negligible. After all, AI can handle several hundred micropayments in just a minute, and the blockchains we usually use simply cannot bear that load.
Kite precisely addresses this pain point by rebuilding infrastructure from the ground up. It is not patching the old system but treating AI agents as first-class citizens. The project has constructed a dedicated Layer 1 blockchain that supports real-time, low-cost inter-machine payments. Traditional blockchains are suitable for occasional large transfers by humans but cannot handle agents performing hundreds or thousands of microtransactions per minute. Kite optimizes micropayments, stablecoin settlements, and high-frequency interactions, like paving a dedicated highway for agents.
More cleverly, there is identity management. Kite adopts a layered structure: humans possess root wallets, while agents receive limited-privilege session keys. It's like giving children an allowance, setting limits, rules, and scope. If an agent makes a mistake, the losses are strictly controlled, and the main wallet remains intact. This design enforces boundaries through cryptography rather than relying on trust. Agents can act autonomously but always operate within the framework defined by users, including spending limits, allowed entities, and behavior logs, all of which are transparent and auditable.
This is not just a technical aspect; it also involves responsibility and control. When AI starts handling real money, such as booking flights automatically, managing investments, or calling paid APIs, we need to ensure it doesn't go off the rails. Kite has built-in programmable governance that allows users to preset conditions, and the agent's performance can also impact its reputation. In this way, the agent is not a runaway horse but a compliant assistant.
Recently, Kite secured $18 million in funding led by PayPal Ventures, with a total of $33 million raised. This reflects industry consensus: giants like Google are also exploring similar agent payment protocols, but Kite is more thorough, integrating identity, payments, and governance into one. It has launched the Kite AIR system, supporting independent authentication and transactions for agents while integrating platforms like Shopify and PayPal, allowing agents to shop and settle directly.
Looking ahead, AI agents will dominate massive microtransactions, forming an agent economy. Kite not only addresses current issues but also provides a foundation of trust for this new economic entity: safe, controllable, and transparent. It still sounds a bit futuristic, but when AI transitions from chat tools to everyday assistants, such infrastructure will be imperative. Kite shows us that autonomous intelligence does not mean losing control; rather, it can operate freely under clear rules. This may be the true direction of progress in the AI era.
