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PayPal’s stablecoin just got a new home. PYUSD is now live on Kite, the AI-focused blockchain, with LayerZero and Stargate Finance handling the cross-chain plumbing that makes it all work.
The move connects PYUSD to Kite’s ecosystem from networks like Ethereum and Solana, giving the platform a major stablecoin rail as it builds out what it calls the “agentic economy” — a blockchain environment where AI agents, not just humans, are making payments and settling transactions at high frequency.
What Kite is building, and why PYUSD matters
Kite AI isn’t your typical Layer 1 chain trying to be the next Ethereum killer. Founded by alumni of Databricks, Uber, and UC Berkeley, the project is designed as a vertically integrated system for AI-driven transactions.
The Kite mainnet supports LayerZero v2, the upgraded omnichain messaging protocol that enables asset transfers and communication across disparate blockchain networks. Stargate Finance, LayerZero’s native bridging protocol, serves as the actual mechanism moving PYUSD between chains and onto Kite.
On Kite’s testnet, PYUSD has already demonstrated some interesting features. The stablecoin contract includes built-in “claim” functions and a verified contract address, suggesting the team is engineering gasless transfer capabilities.
PayPal Ventures co-led Kite’s $20 million Series A round in September 2025, alongside General Catalyst. Total funding for the project sits at $35 million.
LayerZero’s role as the connective tissue
For Kite, LayerZero v2 handles two critical functions. First, it enables omnichain messaging, meaning smart contracts on Kite can communicate with contracts on Ethereum, Solana, and other supported networks. Second, paired with Stargate Finance, it facilitates the actual asset transfers that bring PYUSD liquidity onto the platform.
Kite’s partnership list extends beyond LayerZero and PayPal. The project has also aligned with Avalanche and Coinbase, further underscoring its strategy to build robust cross-chain capabilities rather than operating in isolation.
What this means for investors
The funding profile is unusual. A $20 million Series A co-led by PayPal Ventures and General Catalyst isn’t the kind of backing you typically see in projects that are pure narrative plays.
Kite’s vertically integrated approach combines its own chain, a programmable wallet identity system called “Passport,” and direct stablecoin integration with PYUSD.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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