Building AI-Native Blockchain Infrastructure with Kite AI's Lei Lei

Watch on YouTube ↗  |  January 20, 2026 at 14:53  |  48:07  |  The Block
Speakers
Lei Lei — Head of Business Development and Strategy, Kite AI
Kelvin Sparks — Host & Research Analyst, The Block
Steven Gates — Founder, Hypha

Summary

The episode features Lei Lei of Kite AI discussing why AI agents need dedicated blockchain infrastructure, specifically Kite's agent-native L1 built on Avalanche. The conversation covers Claude Code's viral productivity gains, x402 payment protocol volume, trust and guardrails for agent swarms, and Kite's upcoming mainnet and token utility. The hosts and guest also discuss enterprise interest in AI-crypto payments and the next wave of onchain activity from AI agents.

  • Kite AI is building an agent-native L1 on Avalanche to support microtransactions and agent payments.
  • The discussion covers Claude Code and AI productivity tools reshaping knowledge work.
  • x402 protocol reportedly did $600M in annualized payment volume, with 2026 catalysts expected.
  • Enterprise interest in AI agents is driving demand for trust, identity, and payment guardrails.
  • Kite AI has backing from Avalanche, Coinbase Ventures, and PayPal Ventures.
  • Kite plans mainnet launch and next-phase token utility in the coming months.
  • Hosts debate the next wave of retail capital coming from AI agents transacting onchain.
  • Privacy and regulation are mentioned as an unresolved debate around Zcash and the Genius Act.
Ideas
Lei Lei Head of Business Development and Strategy, Kite AI 4:39
Kite AI launches agent-native L1 infrastructure.
Kite AI is building an agent-native L1 on Avalanche C-chain with zero-fee RPCs, delegated wallet sessions, Kite Passport for identity and intent verification, x402 payment rails, and a cryptoeconomic incentive framework. It has backing from Avalanche, Coinbase Ventures, and PayPal Ventures, and is preparing mainnet launch and next-phase token utility, which could drive ecosystem growth.
Kite AI HIGH
Lei Lei Head of Business Development and Strategy, Kite AI 5:16
AI agents need dedicated blockchain infrastructure.
AI agents need purpose-built, agent-native blockchain infrastructure rather than general-purpose chains because agentic payments are mostly microtransactions requiring low or zero gas fees, and enterprises need guardrails around payments, delegated authority, and trust. General-purpose chains face congestion and fee spikes that make microtransactions uneconomic.
AI-native blockchain infrastructure HIGH
Kelvin Sparks Host & Research Analyst, The Block 43:15
AI agents will bring retail capital onchain.
Kelvin is bullish on AI agents transacting onchain as the next wave of retail and non-institutional capital. AI agents can execute algorithmic trading strategies, navigate volatility, capture spreads faster than humans, and operate continuously, making onchain agent-driven trading a major growth area.
AI-SECTOR MED
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This The Block video, published January 20, 2026, features Lei Lei, Kelvin Sparks discussing Kite AI, AI-native blockchain infrastructure, AI-SECTOR. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lei Lei, Kelvin Sparks  · Tickers: Kite AI, AI-native blockchain infrastructure, AI-SECTOR