During this time, the AI and cryptocurrency circles seem to have simultaneously pressed the 'standardization' button.
On one hand, the Linux Foundation has just incorporated the Model Context Protocol (MCP) into the newly established Agentic AI Foundation. OpenAI, Anthropic, Google, Microsoft, and Block are all on board, preparing to make MCP the 'HTTP protocol' of agentic AI—allowing AI agents and applications to interface tools and services in a unified manner.
On the other hand, the U.S. GENIUS Act has officially come into effect, establishing a complete regulatory framework for payment stablecoins at the federal level for the first time: who can issue, how to back them, how to report, and what stablecoins can be used for. Similar stablecoin regulations are also being implemented in Hong Kong and the European Union. Stablecoins have shifted from being seen as 'on-chain dollar substitutes' to being regarded as serious payment infrastructure.
Looking further into the financial industry, UK regulators have begun pilot programs with local banks for agentic AI: allowing AI agents to directly help users with budgeting, investment, and risk management, emphasizing 'automated decision-making + accountability + avoiding systemic risks'.
AI agents have protocols like MCP to run standardized workflows,
Stablecoins have regulations like GENIUS/MiCA as safeguards,
Banks are also trying to incorporate 'agent decision-making' into compliance frameworks.
The missing piece is actually very straightforward:
When the MCP standard allows AI agents to operate everywhere, and the GENIUS Act subjects stablecoins to serious regulation,
On which ledger should those AI agents that truly sign for humans and settle with stablecoins operate?
Kite's answer is to make itself the neutral settlement chain that records stablecoin flows for AI agents:
An EVM-compatible Layer 1, specifically designed for autonomous AI agents + stablecoin payments + state channels with underlying parameters and architecture rewritten.
If you only look at the narrative, you can easily mistake Kite for another popular 'AI + L1' ticket:
Raising $33 million, backed by a string of traditional tech and crypto VCs like PayPal Ventures and Samsung Next; the official rhetoric is 'building a payment blockchain for the AI agent economy, supported by stablecoins like USDC and PYUSD for large-scale micropayments'.
But by bringing the standardization line into it, Kite aims to occupy a more specific position:
Above: protocols like MCP, Agents.md, and Goose standardize how 'AI calls tools and collaborates';
Next to it: laws like GENIUS / MiCA standardize how 'stablecoins are issued and used for payments';
Middle is empty: Who will provide these AI agents that settle with stablecoins a settlement chain that understands agentic AI and can clearly explain it to regulators?
What Kite aims to do is turn this vacancy into its own moat.
In the eyes of traditional public chains, an address is just an address, and a contract is just a contract; who is signing this USDC is not important;
But in the context of agentic AI + stablecoin regulation, this suddenly becomes critical:
Banks need to answer: Was this payment initiated by the customer themselves, or was it done by some AI budgeting assistant?
Regulators want to ask: Who is the final responsible party on this decision chain? Who do you look for when something goes wrong?
Corporate legal teams need to follow up: Has this procurement and contract gone through all the pre-established processes?
The three-layer identity architecture in Kite's white paper is aimed at this reality:
At the top level is the User: human users or institutions, who hold the true root authority, and whose assets are recorded from an accounting perspective at this level.
In the middle is the Agent: each AI agent has its own distinct identity and wallet, but this identity is derived through BIP-32 and is firmly linked to the delegated authority of a User.
At the bottom level is the Session: each specific workflow/transaction/task execution runs with session keys, automatically invalidating after completion, with the entire chain written into on-chain events at the Session granularity.
The effect of this architecture is to separate several originally mixed aspects:
Who is the true owner of the funds (User);
Which Agent took this job (Agent);
Which Session issued this stablecoin during a specific time window (Session).
For the MCP/Agentic AI Foundation line, Kite issues a 'chain badge' to every Agent that follows MCP: from which User you are derived, what capabilities you have, and what tasks you have performed are all verifiable.
For the regulation of stablecoins after GENIUS, this means that every USDC/PYUSD payment flow is tagged with complete metadata of 'who issued the instruction, who holds the assets, who is executing', which is much more transparent than the majority of on-chain transfers today.
After clarifying identity, the second thing Kite does is to put 'risk control and budgeting itself on-chain'.
In the traditional corporate world, budgets and risk controls are written into systems, in Excel, and various approval forms;
In the world of AI agents, if you still want to rely on 'manual approval + offline risk control' to back every operation of agentic AI, you're almost guaranteed to fall behind in speed.
What Kite is doing on-chain is a whole layer of Programmable Governance / Programmable Constraints:
Users no longer just give Agents a total authorization of 'you can operate this amount of money', but provide a set of intentions + constraints:
What categories of tasks can you help me accomplish within this time window;
The maximum amount of stablecoins that can be issued per day/hour;
Which types of audited Services/Merchants can you interact with;
In which situations must you stop (for example, if volatility exceeds a certain threshold, a certain type of asset depegs, or an abnormal loss threshold is triggered).
Kite translates these intentions and constraints into AA wallet rules + smart contract logic:
Every time an Agent initiates a stablecoin payment, the contract first checks:
Whether it is still within the budget limit;
Whether it is for counterparties on the whitelist;
Whether it has hit the 'conditions requiring additional confirmation'.
In other words, in the world of MCP, you can describe 'what the Agent wants to do' using multiple protocols;
In the world of Kite, you must first write on-chain 'what degree the Agent is allowed to do'.
This is a very practical benefit for the payment-based stablecoins of GENIUS.
Regulators do not want to interfere with every USDC call you make, but they care about whether there is a set of 'risk boundaries written into the system' that can be reviewed. Kite's Programmable Constraints upgrade this from 'documented' to 'must be executed on-chain'.
The third layer is how money itself moves.
The goal of MCP is to establish a unified protocol for communication and tool invocation between agents;
The goal of Kite is to create a 'highway that understands Agents' for the stablecoin payments corresponding to these calls.
So you will see that Kite's white paper is very radical in its discussion of agent-native payment rails/state channels/streaming micropayments:
Making stablecoin payments stablecoin-native: assets like USDC and PYUSD become the default settlement medium rather than an added feature;
Using state channels/programmable micropayment channels to compress the majority of small calls within the channel, only going on-chain during channel openings, disputes, and settlements;
The target metrics are: sub-100ms latency, per message costs at the $0.000001 level, capable of supporting AI agents to use stablecoins for second-based billing and per-call billing in streaming payments.
From the perspective of Binance users, what does this mean?
It's simple:
For developers, Kite becomes a chain that helps you clearly record the costs behind 'every MCP call' on the stablecoin transaction flow.
For institutions, this chain allows you to use stablecoins for various pay-per-use models—buying computing power, data, API calls—while ensuring that 'every penny is spent according to the rules laid out in the contract'.
For compliance, all these micropayments can still be viewed as a clear ledger at the time of settlement, rather than a pile of unexplainable script operations.
This is also why the official positioning of Kite is 'The First AI Payment Blockchain', rather than 'just another high-performance DeFi public chain': it bets on the entire chain of agentic AI + stablecoin commerce + micropayments, rather than a single point narrative.
Finally, what many people are most concerned about: what role does the KITE token play here?
From publicly available information, the design of KITE essentially binds all those upper layers together:
L1 layer: staking and validating settlement security, PoS + future designs linked to AI stack contributions (for example, whoever is willing to provide data, models, or computing power will receive more rewards);
Payment layer: fees charged by state channels and a portion of economic activities on stablecoin flows will flow back to the protocol side in some form, using KITE as the pricing/distribution unit;
Governance layer: who can adjust credit parameters, risk rules, and module whitelists will ultimately fall under the governance rights of token holders;
Ecosystem layer: module developers, applications that have integrated MCP, and service providers connecting enterprise systems to Kite can all align incentives through KITE.
You can understand it as:
KITE connects the aspects of 'who keeps the accounts', 'who is responsible', 'who contributes', and 'who consumes resources on the chain' through an economic system.
For traders, this means $KITE will naturally be linked to several variables:
The implementation speed of MCP/Agentic AI standards in large companies;
The 'normalization of on-chain payments' driven by GENIUS/MiCA and other stablecoin regulations;
To what extent are enterprises and financial institutions willing to entrust real budgets to AI agents and then hand over the settlement layer to an auditable chain like Kite.
For developers and institutions that truly intend to adopt Kite, the questions you need to consider are completely different:
When MCP has already provided you with a complete set of standardized agent protocols, and stablecoin regulations have fixed the payment tracks and reserve requirements,
Will you continue to randomly keep accounts on a general public chain that is blind to Agents,
Or will you move all stablecoin flows related to agentic AI to a settlement chain that has been rewritten from identity, budgeting to micropayments for agents?
This is essentially the proposition Kite is betting on in this round of 'standardization wave'.
In my view, Kite is still in a very early position:
The MCP line has just been donated to the Linux Foundation, and the Agentic AI Foundation has only recently been established;
Although the GENIUS Act has become the first true piece of crypto legislation in the United States, various details and secondary rules are still being implemented;
Banks and enterprises are only piloting agentic AI on a small scale and have not handed over their core ledgers to AI.
But because of this, a chain that starts off treating 'AI agents + stablecoin + compliant settlement' as a basic axiom has a better chance of 'growing into regulations'—when regulators really start to routinely inspect the on-chain flows of AI agents, what the ledger looks like, who keeps it, and who decides the rules will no longer be purely a technical issue but a matter of institutional policy.
What Kite aims to do is be the one who writes the ledger in advance according to system requirements.
Disclaimer:
The above content is personal research and opinion from Kèzhōu Qiújiàn based on public news, Binance Research reports, and Kite's official white paper, intended for informational sharing and does not constitute any investment or trading advice. Discussions involving KITE, stablecoins, AI agents, or other crypto assets carry high volatility and regulatory uncertainty risks. Please conduct your own independent research (DYOR) and take independent responsibility for each authorization on-chain and every transaction.
