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Alibaba Announces Plan to Integrate Nvidia’s AI Dev. Tools

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Alibaba announced Wednesday that it will integrate Nvidia’s AI development tools for robotics, autonomous driving, and smart spaces directly into its Cloud Platform for AI – a major partnership to push the boundaries of applied AI.

The partnership extends Nvidia’s dealmaking blitz, following its pledge to stake $5 billion in Intel and a headline-grabbing $100 billion investment in OpenAI.

At the heart of the deal is Nvidia’s Physical AI software stack, a system designed to construct 3D digital twins of real-world environments. These replicas generate synthetic training data for robotics, self-driving vehicles, or connected industrial spaces such as warehouses and factories.

While financial terms were not disclosed, the collaboration is strategically weighty. It unites the world’s leading supplier of AI-optimized chips with one of Asia’s most important cloud and AI infrastructure players, underscoring how both companies are racing to entrench themselves deeper in the global AI ecosystem.

The partnership is part of Alibaba’s broader pivot toward AI as it seeks to complement and diversify its e-commerce core. The company said Wednesday it is surpassing its previous $50 billion budget for AI investments, signaling its most aggressive expansion yet.

New initiatives include building data centers in Brazil, France, and the Netherlands—marking its first physical AI cloud infrastructure presence in Latin America and a strengthened foothold in Europe. Across the board, Alibaba now operates 91 data center locations across 29 regions, making it one of the fastest-expanding global cloud players.

The company also unveiled the latest in its in-house language model family, Qwen 3-Max, which it describes as its most advanced to date. Trained on 1 trillion parameters, Qwen 3-Max is optimized for coding and agentic tasks, a signal that Alibaba is not just competing on infrastructure but also on core model development.

For Nvidia, the Alibaba deal adds another high-profile alliance to a string of bold investments and partnerships that highlight its expanding role in shaping the AI industry. Its recent decisions to invest billions in Intel and OpenAI reveal a strategy that goes beyond supplying GPUs to actively steering the AI ecosystem.

The deal with Alibaba complements that vision by embedding Nvidia’s Physical AI stack into one of the largest non-U.S. cloud ecosystems. This not only extends Nvidia’s software reach but also strengthens its grip on the Chinese and global AI development market—particularly in applied AI domains like robotics, autonomous vehicles, and industrial automation.

Beijing’s Clampdown on Nvidia Chips

The timing, however, adds a layer of uncertainty. The Alibaba partnership comes as Beijing steps up its restrictions on Chinese companies’ use of U.S.-designed chips. Earlier this month, The Financial Times reported that the Cyberspace Administration of China (CAC) instructed leading firms—including TikTok parent ByteDance and Alibaba itself—to halt testing and orders of Nvidia’s RTX Pro 6000D, a GPU tailored specifically for the Chinese market.

According to the report, the directive not only froze new purchases but also required the cancellation of existing orders. This was seen as Beijing flexing its control in response to Washington’s export bans on high-performance GPUs such as the A100 and H100, which U.S. officials argue could be used for military and surveillance purposes. Nvidia responded by creating modified versions like the A800, H800, and RTX Pro 6000D, designed to comply with U.S. export rules while still serving Chinese clients.

But Beijing’s latest clampdown raises the risk that even these compromise chips may be swept into wider restrictions, further complicating Nvidia’s position in China. Against this backdrop, there is concern that Beijing may expand its scrutiny to additional Nvidia products, potentially impacting the very partnership now being celebrated with Alibaba.

However, the Nvidia–Alibaba deal reflects a broader race among tech giants to dominate the applied AI layer, where foundational models meet practical applications. But the partnership with Nvidia offers a powerful foothold in China’s AI ecosystem without directly relying on restricted hardware sales. For Alibaba, leveraging Nvidia’s Physical AI stack accelerates its ability to compete globally against Microsoft Azure, Google Cloud, and Amazon Web Services.

Yet the geopolitical headwinds cannot be ignored. Washington has steadily tightened restrictions on Nvidia’s most advanced GPUs, while Beijing appears intent on limiting domestic reliance on American-designed silicon altogether. If China extends its bans to additional Nvidia chips, it could chill the momentum of collaborations like the one with Alibaba—even if the partnership is primarily software-driven.

USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration

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USD.AI is a decentralized stablecoin protocol designed to bridge decentralized finance (DeFi) with the AI industry. It issues USDai, a synthetic USD-pegged stablecoin, and sUSDai, a yield-bearing variant, both collateralized by tokenized GPU hardware and computational assets.

This allows AI companies to borrow against their high-value GPUs like NVIDIA chip for quick, equity-free capital, while depositors earn yields from the income generated by these assets.

Built by Permian Labs and launched on Arbitrum for low-cost, scalable transactions, USD.AI addresses the massive funding needs of AI startups by turning idle compute hardware into on-chain collateral.

Recent Funding and Growth

In August 2025, USD.AI raised $13M in Series A funding led by Framework Ventures, with participation from Dragonfly, Bullish, Arbitrum Foundation, and Digital Currency Group (DCG).

This capital is fueling expansion of GPU-backed lending and a public launch. During its private beta, the protocol quickly amassed $50M in deposits, demonstrating strong early demand for AI-linked yields.

USD.AI announced a major expansion of its pre-deposit vaults ahead of the full public launch. $500M up from $160M, which was reached just weeks earlier on. $250M allocated exclusively to the Plasma Foundation, a partner focused on efficient stablecoin settlement and cross-border payments.

Deposits open September 23, 2025, at 12 PM EST (16:00 UTC) via Ethereum Mainnet using USDC. This is positioned as potentially the “last raise before liquidity floods in,” aligning with an upcoming ICO 7% supply at $300M FDV, 100% TGE and airdrop 3% supply for stakers, with 30-day withdrawal lockups.

Token generation event (TGE) is expected in Q1 2026. This move reflects surging interest in AI-DeFi convergence, where stablecoins like USDai enable real-world asset (RWA) tokenization of GPUs. Analysts see it as a blueprint for scaling AI infrastructure financing, similar to how stablecoins revolutionized remittances.

For AI Builders it enhance faster loans 90% quicker than traditional lenders without diluting equity, backed by compute income. For Depositors: Earn T-Bill-like yields 98% backed by T-Bills, 2% by NVIDIA/Rockchip assets while supporting AI growth.

Stablecoin market cap is projected to hit $1T by 2026, with AI x crypto narratives driving new use cases like GPU vaults and autonomous agents. By raising the deposit cap to $500M, USD.AI can provide more AI companies with access to non-dilutive capital by collateralizing their GPU hardware.

This could accelerate AI development, as startups gain faster access to funds (90% quicker than traditional lenders) without sacrificing equity. The platform’s model of tokenizing high-value compute assets (e.g., NVIDIA GPUs) sets a precedent for real-world asset (RWA) integration in DeFi.

This could inspire similar platforms to tokenize other AI-related assets, like datasets or proprietary models, expanding the market for compute-backed finance. The $500M cap expansion, with $250M allocated to the Plasma Foundation, signals robust demand for yield-bearing stablecoins.

Depositors can earn T-Bill-like returns potentially drawing institutional and retail capital into DeFi. The partnership with Plasma Foundation for efficient stablecoin settlement suggests USD.AI could play a role in cross-border payments, competing with traditional systems like SWIFT.

The cap raise, timed before a Q1 2026 token generation event (TGE) with a $300M fully diluted valuation (FDV) and 7% token supply, positions USD.AI to capitalize on the growing AI x crypto narrative. The planned airdrop (3% supply for stakers) could drive early adoption and speculative interest.

The rapid cap increase from $160M to $500M in weeks reflects high demand but also raises concerns about over-leveraging or mismanaging GPU collateral. If GPU valuations drop it could impact USDai’s peg stability or depositor confidence.

USD.AI’s unique focus on GPU-backed stablecoins sets it apart from traditional stablecoins (e.g., USDT, USDC) and other RWA platforms (e.g., real estate tokenization). However, it faces competition from emerging AI-DeFi protocols and must maintain trust in its collateral management.

Built on Arbitrum for low-cost, scalable transactions, USD.AI’s growth could further solidify Arbitrum as a go-to layer-2 for DeFi and AI applications. This may drive more projects to Arbitrum, boosting its TVL and ecosystem.

USD.AI’s model lowers barriers for AI startups, especially smaller players, to access capital without relying on venture capital or traditional banks. This could democratize AI innovation, particularly in regions with limited access to funding.

GPU-heavy AI compute is energy-intensive. If USD.AI’s growth fuels more GPU purchases or usage, it could face scrutiny over its environmental footprint unless mitigated by sustainable practices (e.g., green energy for data centers).

Tokenizing physical assets and issuing stablecoins invites regulatory attention, especially in jurisdictions like the U.S. where stablecoin oversight is tightening. USD.AI’s $500M cap and upcoming ICO may attract scrutiny, potentially impacting operations or investor sentiment.

The Series A backing from major players like Framework Ventures and Dragonfly, combined with the cap raise, signals strong investor confidence. However, the 7% ICO supply and $300M FDV suggest a high valuation, which could limit upside for late investors if not matched by growth.

Rainbow Wallet’s $RNBW Token Launch As Coinbase’s Mag7 + Crypto Equity Index Futures Launch

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Rainbow, a popular non-custodial Ethereum wallet known for its user-friendly interface and support for NFTs and DeFi, officially announced the launch of its native token, $RNBW, slated for Q4 2025.

This confirmation ties directly into Rainbow’s existing points program, which was introduced in December 2023 to reward users for activities like token swaps and wallet interactions—points that will convert into $RNBW tokens.

Token Generation Event (TGE) is expected in Q4 2025, with approximately 20% of the total supply released into circulation at launch. $RNBW will power new features like perpetual futures trading via a partnership with Hyperliquid and a gamified “King of the Hill” daily token experience to boost in-wallet activity.

Alongside the token reveal, Rainbow rolled out Phase 3 updates, including real-time pricing, instant balance refreshes, live candlestick charts, and expanded EVM network support in its in-app browser.

New users can still participate by downloading the wallet mobile or browser extension, importing an existing EVM wallet, applying a referral code for a 10% points boost, and performing swaps (e.g., at least $100 for bonus points). Invites and daily activity further increase earnings.

This move follows similar token teases from competitors like MetaMask and Rabby, signaling a broader trend of wallet providers tokenizing to enhance user incentives and ecosystem growth. Rainbow, backed by $19.5 million in funding, positions $RNBW as a tool for rewarding “fun onchain” experiences.

Coinbase’s Mag7 + Crypto Equity Index Futures

Coinbase Derivatives launched the Mag7 + Crypto Equity Index Futures—the first U.S.-listed derivatives product to bundle exposure to major tech equities and cryptocurrency ETFs in a single contract.

This hybrid instrument targets institutional investors seeking efficient hedging and diversified bets across traditional finance (TradFi) and crypto, addressing a long-standing gap in multi-asset derivatives.

Monthly, cash-settled futures with a notional value of $1 × the index price (e.g., $3,000 index = $3,000 contract). Quarterly rebalancing ensures alignment with market shifts, with MarketVector as the index provider.

Initially available on partner platforms for institutions; retail expansion planned soon. The launch coincides with rising institutional crypto interest and Big Tech’s alignment with risk-on sentiment, potentially boosting crossover trading volumes. It’s regulated under CFTC oversight with segregated accounts for compliance.

This product underscores Coinbase’s push into equity-linked derivatives, blending innovation sectors like AI-driven tech and digital assets into one efficient tool— a step toward seamless TradFi-crypto integration.

With features like Hyperliquid-powered perpetual futures and the “King of the Hill” gamified token game, $RNBW positions Rainbow as a “fun on-chain” hub, potentially boosting daily active users (DAUs) by 20-30% pre-TGE through referrals and activity multipliers.

However, it raises eligibility concerns—users must maintain transaction histories for point verification, and final tokenomics could dilute rewards if supply balloons. As an infrastructure play, $RNBW could enhance liquidity in EVM ecosystems by tying rewards to DeFi and NFT interactions, capitalizing on expected Q4 market recoveries.

Yet, recent drama, like the rejected acquisition of Clanker protocol offering 4% of $RNBW supply, highlights integration risks, sparking Base ecosystem volatility and ethical debates on DeFi mergers.

$RNBW could solidify Rainbow’s edge in user experience, but success hinges on transparent distribution and seamless app upgrades to avoid alienating its 1M+ user base.

Implications of Coinbase’s Mag7 + Crypto Equity Index Futures

Coinbase’s debut of the Mag7 + Crypto Equity Index Futures—the first U.S.-listed derivative blending “Magnificent 7” tech stocks, COIN shares, and BlackRock’s IBIT/ETHA ETFs—ushers in hybrid multi-asset trading, enabling institutions to hedge or speculate on tech-crypto convergence with a single, cash-settled contract 10% weighting per asset, quarterly rebalanced by MarketVector.

This $1x index notional (e.g., $3,000 at launch) addresses a key gap in fragmented markets, where 86% of institutions seek diversified crypto exposure but face operational hurdles. With a low 0.52 correlation between equities and crypto, the index offers a Sharpe ratio of 1.45 (vs. S&P 500’s 0.17), allowing efficient hedging—e.g., a 75/25 equity/BTC mix historically outperforms during stress.

It democratizes access for retail phased rollout post-institutional while providing leverage up to 10x, potentially drawing $5B+ in daily volumes by amplifying liquidity across TradFi and crypto. By including regulated ETFs, it legitimizes crypto as a core portfolio staple, aligning with rising institutional bets 59% allocating >5% AUM to digital assets.

Coinbase’s CFTC compliance and segregated accounts mitigate risks, positioning it as an “everything exchange” amid acquisitions like Deribit—though basis risk between ETFs and spot prices could widen in volatility spikes. The product could catalyze capital inflows to both sectors, boosting COIN’s valuation 10% weighting and ETF volumes, while signaling regulatory maturity.

However, it exposes users to amplified losses (e.g., 10% index drop = $300/contract hit) and policy shifts, like SEC tweaks to crypto ETFs. In essence, this futures product accelerates crypto’s mainstream integration, potentially reshaping $100T+ derivatives markets, but demands savvy risk navigation amid its innovative hybrid nature.

Kraken Partners with Legion to Launch Yield Basis (YB) Token Sale

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Kraken, a major cryptocurrency exchange, has announced the debut of its new token launch platform, Kraken Launch, with the first project being Yield Basis (YB), a Bitcoin-native yield protocol created by Michael Egorov, the founder of the DeFi protocol Curve Finance.

The partnership involves Legion, a reputation-based access platform for token distributions, to ensure a fair and merit-based allocation process. Kraken Launch aims to provide users with early, compliant access to token sales in a transparent manner. This is the inaugural offering on the platform.

The YB sale will occur in two phases: Phase 1 is reserved for users with high Legion Scores a reputation metric, allocating about 20% of the supply. Phase 2 is open to all eligible Kraken users. YB tokens are expected to list on Kraken shortly after the sale, providing immediate liquidity.

Total supply is capped at 1 billion YB tokens, with 300 million in initial circulation. Yield Basis is designed to generate BTC-native yields through a fee-driven model on Ethereum, building on Curve’s automated market maker (AMM) architecture.

Automated Re-Leveraging maintains liquidity provider (LP) exposure aligned with underlying BTC assets, minimizing impermanent loss from AMM curvature risks. Locked veYB vote-escrowed YB tokens govern emissions and earn a share of protocol fees via a dynamic admin fee minimum ~10%, up to 100% based on LP opt-ins.

Approved by Curve DAO for a $60 million crvUSD credit line to seed three Bitcoin liquidity pools each capped at $10 million. This ties YB’s growth to Curve’s stablecoin ecosystem, with 35–65% of revenue shared with veCRV holders and 25% reserved for the Curve ecosystem.

This move comes amid Curve’s efforts to enhance CRV tokenomics through revenue-sharing, following Egorov’s proposal on September 17, 2025, to transform governance tokens into yield-bearing assets. The launch highlights growing demand for on-chain Bitcoin liquidity strategies.

Yield Basis introduces a novel way to generate BTC-native yields on Ethereum using Curve’s AMM infrastructure. This could drive greater adoption of Bitcoin in DeFi by enabling holders to earn sustainable yields without relying on volatile, high-risk strategies.

The protocol’s automated re-leveraging and dynamic fee structure 10–100% admin fees aim to minimize impermanent loss and provide stable returns, appealing to institutional and professional traders seeking low-risk BTC exposure.

By integrating with Curve’s $60 million crvUSD credit line and sharing revenue with veCRV holders, Yield Basis strengthens Curve’s ecosystem while competing with other Bitcoin-focused DeFi protocols (e.g., Aave, MakerDAO) for liquidity and user attention.

Kraken Launch’s use of Legion’s reputation-based scoring for Phase 1 allocations promotes merit-based access, potentially reducing bot-driven or whale-dominated token sales. This could set a precedent for equitable token distribution in the industry.

By offering early access to high-potential projects like YB, Kraken strengthens its position as a leading exchange for both retail and institutional users, competing with platforms like Binance Launchpool or Coinbase.

Yield Basis’s integration with Curve, including the 35–65% revenue share with veCRV holders and 25% allocation to Curve’s ecosystem, enhances CRV’s tokenomics. This aligns with Egorov’s vision to transform governance tokens into yield-bearing assets, potentially increasing CRV’s value and utility.

The allocation of 3% of YB tokens for Curve voting reserves suggests ongoing collaboration, giving Curve DAO influence over Yield Basis’s development and potentially aligning the two protocols’ long-term goals.

Yield Basis’s focus on professional traders and institutions, combined with its low-risk yield model, could attract traditional finance players to DeFi, especially as Bitcoin remains a preferred crypto asset for institutions.

Yield Basis’s success depends on effective management of liquidity pools and fee distribution. Any technical issues or mismanagement could undermine confidence in the protocol.

As a BTC-focused protocol, YB’s performance is tied to Bitcoin’s price stability and DeFi market conditions, which could impact yields and adoption. Other DeFi platforms offering Bitcoin yield strategies may challenge Yield Basis’s market share, requiring differentiation through innovation or partnerships.

The Kraken-Legion-Yield Basis partnership marks a significant step in integrating Bitcoin with DeFi, enhancing Curve’s ecosystem, and establishing Kraken as a player in token launches. It could drive institutional adoption, improve token sale fairness, and set new standards for yield-generating protocols.

Quantum Threats to Bitcoin: How the Crypto World Prepares for a Post-Quantum Future

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The rise of quantum computers will one day threaten Bitcoin’s cryptographic core. Researchers now think the danger — once a textbook idea — appears to be real. Studies point to technical obstacles that prevent a full attack. Meanwhile, proposals range from larger keys to alternative algorithms, trying to keep blockchain safe for users and developers for the future.

Most experts agree that Bitcoin’s elliptic?curve signatures may be at risk from quantum computers. A 2017 Roetteler study suggests that solving a 256?bit curve could need a quantum circuit whose cost grows roughly with the cube of the key size.

At a time when the price of Bitcoin is consistently above $100,000, IBM says it’s moving fast toward quantum fault tolerance. In its 2025 roadmap, the company introduced a plan called Starling, which may become operational by 2029. Starling is expected to hold about 200 logical qubits and to run 100 million quantum gates.

This sounds impressive, but the real twist lies in its error?correction method. Instead of the surface codes requiring thousands of physical qubits for each logical one, IBM appears to favor quantum Low Density Parity Check codes. These reportedly cut the physical qubit demand by as much as 90%.

Experts can’t agree on when Q?Day will arrive. Some mention 2027?2030. IBM’s plan outlines a “Starling” chip with about 200 logical qubits by 2029, and a stretch goal of roughly 1,000 logical qubits early in the 2030s.

Those figures are still likely below what’s needed to break Bitcoin security, but the progress appears to concern segments of the crypto world. As a result, migration ideas are starting to spread among developers and investors. This debate has already spilled into the broader crypto market, where XRP price performance — often viewed as a bellwether for investor sentiment in alternative assets — reflects both optimism about blockchain resilience and nervousness over the quantum threat.

How Cryptocurrencies Plan to Adapt

The crypto world already discusses concrete solutions. One of the plans, the Post?Quantum Migration and Legacy Signature Sunset BIP, is based on three steps. First, it would block new trades to at?risk addresses. Next, it would abandon old signatures after a short grace period. Finally, a recovery option could exist for stuck coins.

Another idea, QRAMP, would mandate transferring the funds from ECDSA locations to quantum?safe ones under community deadlines.

Switching Bitcoin to post?quantum safety may not be smooth. In a study published by Cornell University, Jamie J. Pont suggests at least 76 days of overall downtime, which seems costly for worldwide finance.

If the network can’t agree, compatibility issues might trigger splits or forks. The following table shows the actions required for a transition to post-quantum security.

 

Target audience

 

Recommended actions

 

 

Individual BTC holders

?     Migrate funds to new or quantum-resistant addresses immediately

?     Choose wallets or services implementing hybrid or PQC signatures

Developers / Wallet providers / Exchanges ?     Deploy PQC signature support and new address formats

?     Evaluate PQC schemes on the testnet for compatibility and performance

 

 

Bitcoin Community & Protocol Maintainers

?     Establish a clear migration timeline with milestones and deadlines

?     Maintain backward compatibility and smooth transitions to prevent fund loss

?     Educate all stakeholders including miners, node operators, wallet developers, and end-users

 

The threat quantum computers bring to Bitcoin, that once seemed far off, now feels more immediate. Ignoring this could cost a lot and damage trust in the overall crypto system. Still, solutions exist — post?quantum encryption and phased migration plans are already being developed. Coordinating a swift, well?timed, collective, global effort across multiple stakeholder groups remains the main issue.