Sonic Flips the Script: Crypto Funds TradFi Push with $200M Token Move

Sonic Labs, a rebranded blockchain platform formerly known as Fantom Opera, has received community approval to issue $200 million in its native S tokens as part of a strategic expansion into U.S. capital markets. The proposal, which concluded with 99.99% approval from participating wallets, marks a significant step in bridging the gap between blockchain and traditional finance (TradFi). Over 700 million S tokens were used in the vote, meeting the required quorum and reflecting strong consensus among token holders.

A key component of the initiative involves allocating $100 million in S tokens to a strategic reserve supporting a Nasdaq-listed Private Investment in Public Equity (PIPE) vehicle. The remaining $50 million will back an exchange-traded product (ETP) that tracks the S token, which will be issued by a regulated ETF provider with over $10 billion in assets under management. The ETP will be custodied by BitGo, a well-known digital asset custodian. This dual approach aims to facilitate broader institutional adoption of the S token by creating familiar financial instruments for the U.S. market.

In addition to the financial products, Sonic will establish a U.S. entity, Sonic USA LLC, and recruit a New York-based leadership team to drive engagement in Washington, D.C., and across the traditional finance sector. A total of 150 million S tokens, valued at approximately $47.7 million, will be allocated to fund the new division and ensure its initial operations. This marks a reversal of the typical capital flow between crypto and TradFi, as Sonic leverages traditional financial structures to strengthen its presence in the crypto ecosystem [1].

The initiative is also driven by the need to modernize Sonic’s tokenomics, which were inherited from its previous identity as Fantom Opera. At launch, the Fantom Foundation controlled less than 3% of the token supply, a structure that limited the team's ability to fund critical partnerships and listings. This constraint reportedly led to missed opportunities with major players such as GameStop, Robinhood, and Polymarket. By issuing new S tokens, Sonic aims to align with industry peers that typically retain 50%–90% of their initial token supply for strategic initiatives [2].

To counterbalance the new token issuance, Sonic has announced a revision of its gas fee mechanism, which will redirect a larger share of transaction fees toward token burns. This deflationary strategy is intended to reduce the overall supply of S tokens and offset inflationary pressures. The company emphasized that the changes will allow it to engage in TradFi instruments like ETFs and PIPEs without diluting the value for existing token holders [3].

Sonic’s expansion into U.S. capital markets also includes participation in the U.S. Department of Commerce’s program to publish economic data on-chain. By integrating Chainlink and Pyth oracles, Sonic enables developers to access macroeconomic indicators such as GDP and inflation directly on the blockchain. This innovation is expected to support the development of on-chain financial models and lending protocols that leverage real-world economic data.

Whether these initiatives will translate into widespread adoption remains to be seen. However, with a clear mandate from its community and a substantial capital allocation, Sonic is now well-positioned to compete directly in the ETF and traditional finance arena. The success of its Nasdaq-listed instruments and ETP could influence broader market sentiment toward blockchain-based financial products in the U.S.

Source:

[1] Sonic Labs Gets Green Light to Issue $200M in Tokens for US ... (https://finance.yahoo.com/news/sonic-labs-gets-green-light-070754103.html)

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

[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)