Sonic Labs Bridges Blockchain and Wall Street with $250M Expansion Bet

Sonic Labs, the firm behind the high-performance Layer 1 blockchain Sonic, has secured robust community backing for a $250 million expansion initiative into the U.S. capital markets, as outlined in a governance proposal approved on August 31 [1]. The proposal includes the issuance of $150 million in S tokens to support the initiative, with an additional $100 million allocated through a Nasdaq private investment in public equity (PIPE) to create a strategic reserve [2]. The reserve will be used to purchase S tokens on both open and over-the-counter markets, with tokens to remain locked for a minimum of three years [1].

A significant portion of the allocated funds—$50 million—will be used to support the launch of a regulated exchange-traded product (ETP or ETF) in collaboration with a top-tier provider [1]. This move aims to enhance Sonic’s presence in traditional finance and provide institutional investors with a structured and compliant investment vehicle [2]. The company has already rebranded from the Fantom Foundation in August 2024 and launched its native S token, which currently has a market cap of $892.36 million and trades at $0.31 per token [1].

To facilitate U.S. market activities, Sonic Labs is establishing Sonic USA LLC, a Delaware-based subsidiary with plans to open a New York office. The entity will be led by a U.S.-based CEO and supported by a capital markets and business development team, focusing on regulatory compliance and institutional partnerships [2]. The subsidiary will receive an additional 150 million S tokens, issued separately from the $150 million allocation, to fund its operations and drive engagement in Washington D.C. [1].

The proposal also includes changes to Sonic Labs’ tokenomics, designed to make the S token ecosystem more deflationary. A portion of gas fees will now be burned, helping to counter dilution risks and increase long-term token scarcity [2]. These adjustments are part of broader efforts to align Sonic with modern blockchain economic models and improve treasury flexibility, which was previously constrained due to Sonic’s history as Fantom [2].

The initiative is being positioned as a strategic bridge between traditional and decentralized finance, with Sonic Labs aiming to strengthen institutional adoption and market credibility. The project plans to partner with a major ETF provider and BitGo for custody solutions, further reinforcing the legitimacy and appeal of the S token in capital markets [2].

Community support for the proposal was overwhelming, with nearly 860 million S tokens cast in favor—well above the quorum of 700 million required—resulting in a 99.99% approval rate [2]. This demonstrates strong confidence in Sonic Labs’ vision for expansion and long-term value creation.

Source:

[1] Sonic Labs passes $150 million proposal to expand into ... (https://www.theblock.co/post/368861/sonic-labs-passes-proposal)

[2] Sonic Labs passes proposal to expand to U.S. capital ... (https://crypto.news/sonic-labs-passes-proposal-u-s-capital-markets-2025/)