PayPal Bets on Crypto AI Startup Kite in $18M Push for Autonomous Payments

TLDR:

• Kite secures $18M Series A led by PayPal Ventures and General Catalyst, reaching $33M total funding for agentic web infrastructure.
• Kite AIR introduces programmable identity and stablecoin payments for AI agents to transact across platforms like Shopify and PayPal.
• PayPal Ventures said Kite closes gaps in agent-to-agent payments with low fees, no chargebacks, and instant settlement.
• Kite’s founders bring expertise from Databricks, Uber, and Salesforce, with backgrounds in AI, blockchain, and large-scale infrastructure.

PayPal is doubling down on the future of digital payments. The company’s venture arm has co-led an $18 million investment in Kite, a startup focused on bringing crypto and AI together. 

Kite is building tools that allow autonomous agents to transact directly, without human intervention. The funding round, shared by PayPal and General Catalyst, pushes Kite’s total backing to $33 million. Investors from across crypto, finance, and tech joined the raise.

PayPal Fuels Kite’s $18M Crypto and AI Funding Round

Kite, once known as Zettablock, is positioning itself as the trust layer for the agentic web. The company’s infrastructure stems from years of experience powering networks like Polygon, Chainlink, and Sui. 

Its latest funding round drew participation from 8VC, Samsung Next, Vertex Ventures, SBI US Gateway Fund, Avalanche Foundation, Animoca Brands, GSR Markets, Hashed, HashKey Capital, LayerZero, Alchemy, and Dispersion Capital.

Alan Du of PayPal Ventures said Kite is solving a major issue in agent-to-agent payments. Existing methods like virtual cards can’t handle micro-transactions at machine speed. 

He explained that Kite’s system allows low-cost, instant settlement using stablecoins, while removing chargeback risks.

General Catalyst’s Marc Bhargava added that Kite is building the rails for the machine-to-machine economy. He pointed to the company’s ability to process payments at scale as key to future adoption.

This vision is attracting global attention. PayPal’s involvement signals growing interest from traditional finance in AI-driven crypto commerce.

Kite AIR Brings Stablecoin Payments to AI Agents

Kite recently introduced its flagship platform, Kite Agent Identity Resolution, or Kite AIR. 

The system enables AI agents to authenticate, make payments, and follow programmable rules while operating independently. It combines two key features: Agent Passport, which creates a verifiable identity, and Agent App Store, where services can be purchased with stablecoins.

Merchants on Shopify and PayPal can already opt into the platform. Once listed, they become discoverable to AI agents, who can interact and pay on their behalf. Transactions settle on-chain, offering full traceability and real-time monitoring.

PayPal executive Steve Everett said the combination of stablecoins and Kite’s infrastructure unlocks new ways to support automated commerce. He described the approach as a path toward global, programmable payments with real-time auditing and atomic settlement.

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