Author: on-chain observation It's been a long time since there was such exciting news in the Crypto + AI track: KiteAI has secured $18 million in Series A funding from global payment giant PayPal Ventures and top VC General Catalyst. Many people are buzzing about this but are mostly confused, so let me break it down: 1) Why did PayPal bet on KiteAI as a payment Layer 1? Previously, Stripe announced its direct entry into layer 1 - Tempo, and after years of planning USDC, Circle is now working on layer 1 - Arc. Now PayPal has also entered the fray by investing in Kite AI. The underlying logic can be summarized in one sentence: competing for the next generation of payment infrastructure.

KiteAI has secured $18 million in Series A funding from PayPal Ventures and General Catalyst, reflecting the traditional payment giants' emphasis on the future of payment infrastructure. By investing in KiteAI, PayPal focuses on the combination of AI and payments, aiming to address the challenges of micropayment and explore the potential of the AI Agent economy. KiteAI's ability to handle high-frequency low-value transactions sets a new standard for infrastructure, and the key to attracting Wall Street funding lies in its team's professional background and deep understanding of business needs.