Sonic's $150M Bet: Bridging Crypto and Wall Street

Sonic Labs has secured overwhelming community support to invest $150 million in a strategic U.S. market expansion, marking a pivotal shift toward traditional finance integration. The proposal, approved by 99.98–99.99% of voters, authorizes the issuance of 150 million Sonic (S) tokens to fund the initiative, which includes launching a regulated exchange-traded fund (ETF), establishing a Nasdaq private investment in public equity (PIPE) vehicle, and creating Sonic USA, a Delaware-registered entity based in New York City [1][2][3]. The move aims to position Sonic as a serious player in the U.S. capital markets and broaden institutional access to its token.

Central to the expansion is the formation of Sonic USA, which will be led by a U.S.-based executive team and serve as the company’s regional hub for engagement with Washington, D.C., and Wall Street stakeholders [3]. The entity will be seeded with 150 million S tokens, valued at approximately $47.7 million, to support operations and strategic partnerships [5]. Additionally, $50 million in S tokens will be allocated toward the creation of an ETF in collaboration with a “regulated, top-tier” provider managing over $10 billion in assets, with custody handled by BitGo [3]. This ETF is expected to offer institutional investors a compliant and accessible on-ramp to Sonic’s ecosystem [4].

In parallel, $100 million in S tokens will be invested into a Nasdaq-listed PIPE vehicle. This initiative will create a reserve to facilitate open-market token buybacks and over-the-counter trades, with all acquired tokens locked for a minimum of three years. The long-term treasury strategy is intended to stabilize the token’s value and create scarcity, aligning with broader deflationary design goals [1][3]. Sonic also emphasized that this approach mirrors traditional financial practices and aims to enhance the token’s appeal to institutional investors [5].

To counterbalance the issuance of new tokens, Sonic has announced a tokenomics overhaul. The updated model will redirect a larger share of transaction fees toward token burns and reduce overall inflation. Specifically, 90% of fees from FeeM transactions will go to builders, 5% to validators, and 5% will be burned, while non-FeeM transactions will split evenly between burning and validator rewards [4]. This strategy aims to create deflationary pressure and offset supply increases from the expansion, addressing concerns from token holders and aligning with modern blockchain economic models [2][5].

The Sonic token, currently trading at $0.317 as of the latest data, has seen a steady decline since its January 2025 peak of over $1 [4]. Despite the bearish trend, the project remains focused on execution, with the U.S. expansion expected to drive long-term value creation. Sonic also highlighted its broader technical developments, including the launch of an EVM-compatible first-level blockchain in August 2024, which has enhanced the platform’s institutional and developer appeal [1]. Additionally, Sonic has been selected as a participant in the U.S. Department of Commerce’s initiative to publish economic data onchain, further integrating macroeconomic signals into its blockchain infrastructure [5].

The U.S. expansion represents a significant milestone for Sonic Labs, reflecting a strategic pivot from its early "2018 tokenomics," which prioritized community distribution over institutional growth. By retaining a minimal 3% token supply at launch—far below the 50–90% retained by most blockchain projects—Sonic limited its ability to fund key initiatives, such as exchange listings and strategic acquisitions [2][5]. The new issuance package is designed to close this gap, enabling Sonic to compete more effectively in the evolving landscape where blockchain projects increasingly resemble traditional corporations [3].

Source:

[1] Sonic Labs Plans $150M US Expansion and Launches ... (https://coinpaper.com/10823/sonic-labs-plans-150-m-us-expansion-and-launches-1st-regulated-etf)

[2] Sonic Community Backs $150M U.S. Expansion to Woo ... (https://cryptonews.com.au/news/sonic-community-backs-150m-u-s-expansion-to-woo-institutions-130631/)

[3] Sonic Community Approves $150M Token Issuance for ... (https://www.coindesk.com/business/2025/09/01/sonic-community-approves-usd150m-token-issuance-for-u-s-etf-push-nasdaq-vehicle)

[4] Sonic Labs bets on ETFs, Nasdaq PIPE, and fees (https://ambcrypto.com/sonic-labs-bets-on-etfs-nasdaq-pipe-and-fees-will-u-s-expansion-steer-s/)

[5] Sonic Labs gets greenlight for its $200M TradFi move (https://cointelegraph.com/news/sonic-labs-passes-proposal-expand-into-tradfi)