AI models Claude, Grok, ChatGPT, and Gemini all appear to be experiencing outages today.

Across the board, AI users are claiming that they can’t get the models, run by Anthropic, X, OpenAI, and Google respectively, to work.

Fifteen different services offered by OpenAI are reportedly experiencing issues, which OpenAI is currently trying to fix.

Claude’s status tracker detailed how its Mythos, Fable, and Opus models were affected, and it now claims that its Opus 4.8 and Opus 5 models are experiencing problems.

The rest, it says, “have recovered to baseline error rate.”

Read more: Search engines fix Claude leak but Perplexity users’ files still online

X confirmed that Grok was experiencing issues and that it’s investigating, while Cursor claimed, “All Grok models, automations, cloud agents, Grok bot and review agents” are experiencing “service degradation.”

Google’s status page claims that there haven’t been any issues with Gemini. However, the outage analytics site Down Detector claims it’s had hundreds of reports across the last few hours that indicate it’s not working for some.

None of the AI models have addresed the outage on X at the time of writing.

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Polymarket has launched perpetual futures across 10 crypto, equity, index, and commodity markets, allowing eligible international users to trade with leverage of up to 20 times.

Polymarket Perps opens with 10 markets

Polymarket said in its launch announcement that the new service gives traders one interface for perpetual futures linked to cryptocurrencies, stocks, market indices, and commodities.

Uniswap founder Hayden Adams has argued that correlated tokenized-asset pools could move automated market makers into global finance after 10 stock-SPY pools processed $33 million in 12 days.

Uniswap founder Hayden Adams, in an Aug. 18 blog post, said tokenization could change which trading pairs attract liquidity and who supplies the capital behind them.

Ongoing discussions over court size

Student-loan infrastructure startup Pencil Finance says it has completed a fully onchain lending cycle worth $1 million, financing education borrowers in Southeast Asia and repaying investors via smart-contract-recorded cash flows.

In a Thursday announcement shared with Cointelegraph, Pencil described the milestone as its first “fully onchain” student loan cycle—one where the protocol deployed $1 million of lender capital on-chain and borrowers’ repayments flowed back to funders through a structured yield distribution.

Key takeaways

• Pencil Finance completed a $1 million student-loan cycle recorded on-chain, marking its first fully onchain deployment for this use case.
• The July 2025 bundle was funded by Animoca Brands, Open Campus, and New Campus, with senior fixed returns and a junior variable tranche tied to first-loss risk.
• The loans supported around 6,600 students across 118 schools and universities in Southeast Asia, with about 1,050 receiving direct funding.
• Pencil says the majority of borrowers were women (50%) and that 93% came from lower-income households—targeting students underserved by traditional lending.
• The announcement highlights growing interest in tokenized real-world assets (RWAs) for lending, including examples outside education.

How Pencil’s first onchain loan cycle worked

Pencil Finance said the protocol launched the $1 million loan cycle as an onchain bundle that functioned like a lender-to-borrower pipeline. Instead of keeping core loan accounting off-chain, the platform recorded the cycle on a blockchain network, where capital was deployed by lenders and later repaid by borrowers to distribute yield back to funders.

The project framed this as a proof point for transparency in credit: because the lending cycle is executed and tracked on-chain, investors and participants can follow the protocol’s operations through recorded transactions rather than relying entirely on traditional reporting channels.

What the tranche structure covered

According to the announcement, the $1 million bundle was funded in July 2025 by Animoca Brands, Open Campus, and New Campus. Pencil said the financing was organized into two tranches with different risk and return profiles.

The senior tranche offered fixed returns, while the junior tranche carried variable returns and bore first-loss risk. This type of waterfall structure is commonly used in tokenized and structured finance to allocate losses first to the riskiest portion of capital, potentially improving the risk profile of senior participants—while still exposing junior investors to performance variability.

Scale, eligibility, and who received support

Pencil Finance said the onchain student loan cycle financed approximately 6,600 students across 118 schools and universities in Southeast Asia. The company noted that around 1,050 of those students received direct funding under the cycle.

As for borrower demographics, Pencil reported that 50% of funded students were female and that 93% came from lower-income households. The company positioned these figures as evidence that the program is reaching applicants who are often overlooked by conventional lending, where credit access can be constrained by documentation requirements, limited credit history, or geographic and income barriers.

Notably, Pencil claimed the project is the first-ever “fully onchain” lending cycle financing student loans with transparent recording on a blockchain network—an emphasis that matters because tokenized RWA lending is still frequently debated on how transparent and auditable it truly is compared with established financial processes.

Why tokenized loans are gaining attention

Tokenized RWAs are increasingly being used to issue or collateralize loans, and Pencil’s announcement fits into a broader trend of trying to bring more of the lending lifecycle on-chain. The education-focused milestone also echoes how other markets are experimenting with onchain representations of real-world exposures.

For example, earlier coverage from Cointelegraph noted that in July, Brazil’s B3 stock exchange issued a 100,000 Brazilian reais (about $19,600) loan secured by 10 tokenized cows. In that structure, each cow was linked to a unique digital token tied to an encrypted digital identity, while AI-powered smart collars from agriculture tech company Cowmed monitored animal health.

While student loans and farm-asset-backed credit are fundamentally different, both examples point to the same underlying goal: encode key parts of credit risk and reporting into tokenized systems to improve traceability and potentially reduce the friction between traditional assets and onchain capital.

What to watch next

With Pencil Finance now pointing to a completed first fully onchain student loan cycle, the next questions for readers and potential participants are whether subsequent cycles sustain repayment performance at scale and how tranche design evolves as more borrowers—especially underserved groups—enter the system.

Kraken’s parent company, Payward, has signed a partnership with SoFi aimed at linking Kraken’s exchange infrastructure with SoFi’s dollar settlement rails and bringing the SoFiUSD stablecoin into Kraken’s ecosystem. The deal connects SoFi’s 24/7 US dollar settlement network with Kraken Prime, Kraken’s institutional-grade execution venue.

Under the collaboration, SoFi will route eligible digital-asset orders through Kraken Prime’s smart order routing to source liquidity across multiple trading venues. Payward, meanwhile, will join SoFi’s SoFi Exchange Network (SEN) and gain access to SoFi’s business banking services, with the companies saying additional custody services could be added as the relationship expands.

Key takeaways

• SoFi plans to use Kraken Prime as an additional liquidity source by routing digital-asset orders through Kraken’s smart order routing.
• Payward will connect to SoFi’s SoFi Exchange Network (SEN) for access to round-the-clock US dollar settlement.
• The partnership introduces SoFiUSD to Kraken, with the stablecoin issued by SoFi Bank and backed by reserves held in cash and short-term US Treasurys.
• Both firms indicated custody-related services could be incorporated later, suggesting an expanding scope beyond execution and settlement.
• The move fits Payward and Kraken’s broader strategy to build deeper ties with traditional finance and tokenized markets.

How the Kraken–SoFi link is designed

Kraken described the collaboration in a Thursday blog post, explaining that SoFi will route digital asset orders through Kraken Prime. Kraken Prime uses smart order routing to assess pricing and market depth across supported venues in real time, then send orders to the venue most likely to achieve the best fill.

Kraken said this matters because it helps SoFi avoid relying on a single order book for execution. With access to liquidity across multiple venues, SoFi can potentially improve execution quality—especially when markets are fragmented or liquidity conditions change quickly.

The partnership also extends to settlement. Kraken’s institutional and business clients will be able to use SEN, according to the companies, enabling US dollar settlement on a 24/7 basis. For participants used to digital-asset trading hours, around-the-clock settlement is a practical improvement: it reduces downtime between trading and funding/settlement cycles and can streamline cross-platform operations.

SoFiUSD arrives at Kraken

A central element of the agreement is the stablecoin itself. SoFiUSD is issued by SoFi Bank and is described as a dollar-backed stablecoin launched in 2026 for payments and settlement. The companies say SoFiUSD reserves are held in cash and short-term US Treasurys.

By bringing SoFiUSD to Kraken, the partnership effectively broadens the set of dollar-denominated settlement and payment options available to traders and institutions interacting with Kraken’s venues. While the article does not specify which custody or issuance workflows will be added first, the direction is clear: SoFiUSD is positioned as a key bridge asset between the banking-oriented settlement network and crypto trading infrastructure.

Kraken also indicated that qualified custody services could be added as the partnership matures. That point is important for institutional users, because custody and settlement capabilities are often treated as linked requirements in digital-asset operations—especially for firms that need compliance-aligned processes across multiple stages of trading and asset handling.

SoFi’s customer reach meets Kraken’s institutional rails

SoFi already has a large consumer base and offers crypto trading through its app, and Kraken Prime is presented as an additional path for sourcing liquidity rather than a complete replacement of existing execution methods. The companies said SoFi routes eligible trades through Kraken Prime, giving SoFi access to liquidity beyond any single execution venue.

Kraken’s role in SEN is similarly framed as an infrastructure upgrade for clients. By connecting to the SoFi Exchange Network, Kraken and its institutional and business customers can potentially take advantage of round-the-clock US dollar settlement through a banking-linked network—an increasingly important capability as more platforms seek to reduce operational friction in digital-asset markets.

From an investor and operator perspective, the practical value of such connectivity is less about headline integration and more about what changes in daily operations: faster and more continuous settlement options, the ability to execute orders against deeper liquidity pools, and a stablecoin that is explicitly designed for payments and settlement.

Part of a wider push beyond pure crypto

This partnership follows other efforts by Payward and Kraken to broaden their connections to traditional finance. Earlier reporting noted that London Stock Exchange Group reportedly partnered with Payward to offer tokenized versions of leading UK equities through LSE 24, a new 24/5 trading venue set to launch in 2027. Separately, Kraken has added round-the-clock exposure to the S&P 500 through its funded trading program, with commodities expected to follow.

Kraken has also expanded into tokenized public markets via xStocks, the tokenized equities platform developed by Backed Finance, which Kraken acquired in early 2026. Kraken has used xStocks to provide eligible users exposure to share-linked offerings tied to SpaceX and Jersey Mike’s IPO activity, in some cases including direct share allocations.

In the background is Payward’s plan to become a public company. The company reportedly submitted a draft registration statement to the US Securities and Exchange Commission in November 2025, though reports indicate the earliest possible listing timing has been pushed to the second quarter of 2027.

Taken together, the Kraken–SoFi deal reinforces a theme: rather than treating stablecoins, execution, and settlement as separate silos, Payward is building bridges between banking-grade settlement networks and crypto trading infrastructure. If that strategy continues, stablecoins like SoFiUSD and networks like SEN could become more central to how institutions operationalize digital-asset trading—particularly for firms that want 24/7 dollar rails aligned with regulated financial workflows.

Going forward, readers should watch how quickly the partnership expands into additional custody services and how widely Kraken’s institutional clients adopt SEN for continuous US dollar settlement. The next question for the market is whether integrations of this kind—linking bank-adjacent settlement, smart order execution, and dollar-backed stablecoins—become the default operating model for large exchanges and financial platforms.

Dubai’s regulator VARA (Virtual Assets Regulatory Authority) has signed a Memorandum of Understanding (MoU) with Securitize, a tokenization platform backed by BlackRock, in a move aimed at accelerating regulated tokenization activity in the United Arab Emirates.

According to a Thursday announcement shared with Cointelegraph, the MoU sets out a collaboration framework designed to support tokenization and digital asset infrastructure in Dubai, encourage institutional participation, and help shape how tokenized financial products can operate within the emirate’s regulatory environment.

Key takeaways

• VARA and Securitize have agreed to work together on a regulatory-and-industry collaboration framework for tokenization in Dubai.
• The MoU is positioned as a broad cooperation model rather than the announcement of a specific tokenized product or technology stack.
• Dubai continues to position tokenization as regulated financial infrastructure, with VARA pointing to its regulatory “perspective” as a key contribution.
• Demand for tokenized real-world assets (RWAs) has increased sharply in recent weeks, with RWA.xyz reporting rising holder counts and total tokenized asset value.
• Dubai’s efforts arrive as other market operators—such as the London Stock Exchange’s reported partnership with Kraken—push tokenized securities toward more established trading schedules.

VARA and Securitize target regulated tokenization in Dubai

Under the MoU, VARA and Securitize said they aim to support regulated tokenization initiatives across Dubai and the broader UAE. The agreement is also intended to cover tokenization projects initiated by VARA, with a specific focus on understanding how tokenized financial products should function inside Dubai’s existing regulatory framework.

When asked by Cointelegraph about the MoU’s infrastructure objectives, a VARA spokesperson said the effort is meant to establish a collaboration structure between the two organizations rather than to deliver a particular technical implementation or a named product.

“The intention is to combine VARA’s regulatory perspective with Securitize’s experience in institutional tokenisation to identify where collaboration can help support the development of trusted, regulated tokenised markets in Dubai.”

The spokesperson added that no concrete projects will be announced “at this stage.” Still, the agreement creates a formal channel for cooperation that VARA said is intended to “support relevant tokenisation initiatives in Dubai.”

Tokenization shifts from concept to “mainstream” infrastructure

Dubai’s push for tokenization is being framed not as an experimental niche, but as a step toward more conventional financial-market infrastructure. Carlos Domingo, co-founder and CEO of Securitize, described Dubai as among the most “forward-looking jurisdictions” for digital asset innovation and emphasized the importance of regulatory collaboration as tokenization matures.

Domingo’s remarks reflected a broader industry narrative: tokenization is increasingly discussed as a pathway for traditional finance to gain on-chain settlement and programmable workflows, but only if regulators can provide clear operating boundaries.

That theme is reinforced by VARA’s licensing activity. Earlier in July, VARA granted its 50th virtual asset service provider (VASP) license to Tribe Tokenisation FZE—an example of how the regulator has been expanding the number of licensed participants in the ecosystem. While the MoU with Securitize does not announce specific licensed activity, it suggests that regulators are looking to institutional-grade platforms as partners in building “trusted” markets.

Rising RWA adoption meets institutional platform scale

Beyond Dubai-specific policy developments, the MoU arrives amid a broader acceleration in tokenized real-world assets. Data provider RWA.xyz reports that the total number of RWA token holders rose 103% over the prior 30 days to 3.2 million. Over the same period, it said the total value of tokenized assets increased by 2% to $38.5 billion.

Those figures help explain why institutional platforms are increasingly positioning tokenization as a serious revenue and infrastructure layer rather than a purely experimental technology. Securitize is described in the announcement as the world’s largest tokenization platform by tokenized assets under management (AUM), with $4.9 billion. Ondo Finance is reported as second, with $3.5 billion.

For investors and market participants, the practical implication is that regulatory discussions are increasingly happening alongside measurable growth in both participation and capital in tokenized asset categories—particularly RWAs, where compliance and asset governance are central concerns.

Dubai’s move mirrors broader tokenized securities momentum

Dubai’s MoU also lands as tokenization continues to spread across market structures in other jurisdictions. Days earlier, Cointelegraph reported that the London Stock Exchange reportedly partnered with crypto exchange Kraken to launch tokenized stock trading on the operator’s night-time trading venue, aiming to offer 24/5 trading.

While the Dubai agreement is focused on regulated tokenization infrastructure and the operation of tokenized financial products under VARA’s oversight, the parallel is clear: both developments signal that tokenization is moving from issuance and experimentation toward distribution and market access—where regulatory fit, liquidity, and operational reliability become decisive.

As VARA and Securitize begin working under the MoU framework, the key next question for participants will be whether the collaboration produces specific pilot programs or licensing pathways—and how Dubai’s regulatory approach will translate tokenization activity into durable market infrastructure as demand for RWAs continues to grow.