Sonic Reverses Trend, Uses TradFi Tools to Strengthen Crypto Position

Sonic Labs has received approval to issue $200 million in S tokens as part of its strategic move into traditional finance (TradFi) markets in the United States. The proposal, which concluded voting on Sunday, was approved by 99.99% of the Sonic (S) tokens from 105 wallets, meeting the required quorum of 700 million S tokens. This marks a significant step for the blockchain project, which aims to launch a Nasdaq-listed investment vehicle and an exchange-traded product (ETP) to expand its footprint in U.S. capital markets [1].

According to the proposal, $100 million in S tokens will be allocated to a strategic reserve for a Nasdaq PIPE (Private Investment in Public Equity) vehicle. An additional $50 million will be used to support an ETP, which will be issued by a regulated, top-tier ETF provider with over $10 billion in assets. BitGo will serve as the custodian for the fund. Sonic Labs also plans to establish Sonic USA LLC, hire a U.S.-based CEO and team in New York, and focus on Washington, D.C. engagement to further its TradFi initiatives [1].

The company intends to use 150 million S tokens, equivalent to $47.7 million, to bootstrap Sonic USA. This move represents a reversal of the trend where publicly listed companies have increasingly turned to crypto to strengthen their balance sheets. Sonic, however, is leveraging traditional financial tools to enhance its position in the crypto market [1].

Sonic’s tokenomics have been a limiting factor in its expansion. The blockchain inherited the tokenomics from its predecessor, the Fantom Opera network, in which the Fantom Foundation retained less than 3% of the original token supply. This limited Sonic’s ability to engage with key partnerships or list tokens on major exchanges. In contrast, many layer-1 and layer-2 blockchain projects retain 50% of their initial token supply for strategic use. Sonic’s sub-3% allocation has forced it to buy tokens in the open market, which it described as inefficient [1].

To address these challenges, Sonic is implementing measures to make the S token more deflationary. This includes updating its gas fee mechanism to direct a larger share of transaction fees toward token burns. The initiative aims to reduce net inflation and create deflationary pressure on the supply. The company emphasized that these changes will allow it to compete with traditional financial instruments without diluting value for token holders [1].

Sonic has also joined the U.S. Department of Commerce’s onchain data initiative, using Chainlink and Pyth’s oracle services to publish macroeconomic data directly on its blockchain. This move allows developers to access U.S. macroeconomic statistics—such as GDP and inflation data—without navigating the Department of Commerce’s website. Sonic claims this will unlock new onchain innovations, including the development of trading models and onchain lending applications informed by macroeconomic indicators [1].

Despite these strategic advancements, the S token has underperformed since its launch in January 2025, with its value dropping nearly 69% according to CoinGecko. Sonic’s transition from Fantom Opera to its new Sonic chain has yet to deliver the anticipated returns for investors [1].

Source: [1] Sonic Labs Gets Greenlight for Its $200M TradFi Move (https://cointelegraph.com/news/sonic-labs-passes-proposal-expand-into-tradfi)