Sonic Labs Greenlights $200M Push into US TradFi with Planned ETF and Nasdaq Vehicle

The blockchain developer has secured overwhelming community approval for a $200 million token issuance to fund the creation of a U.S. entity, the launch of a token-tracking ETP, and a reserve for a Nasdaq-listed investment vehicle.

NEW YORK – Sonic Labs, the developer behind the Sonic blockchain, has received community approval for a $200 million strategic expansion into the U.S. traditional finance (TradFi) markets. The governance proposal, which passed with 99.99% support, authorizes the issuance of new S tokens to fund the ambitious initiative.

The plan outlines a multi-pronged approach to bridge the gap between DeFi and traditional capital markets. Key allocations include:

• $100 million in S tokens to create a strategic reserve for a Nasdaq-listed private investment in public equity (PIPE) structure.
• $50 million to back a token-tracking exchange-traded product (ETP), which will be issued by a regulated ETF provider with over $10 billion in assets under management. BitGo is slated to serve as the custodian for the product.
• Approximately $47.7 million (150 million S tokens) to establish and fund Sonic USA LLC, a new U.S.-based entity in New York that will spearhead American operations and engage with policymakers in Washington, D.C.

Sonic Labs stated that the expansion was necessary to overcome the limitations of its original tokenomics. "We have 2018 tokenomics. We need 2025 tokenomics," the proposal explained, noting that the foundation’s small token holdings restricted its ability to fund major partnerships and acquisitions. To counteract the inflationary effect of the new issuance, Sonic will update its gas fee system to increase the proportion of transaction fees that are burned, creating deflationary pressure on the token supply.

The initiative builds on Sonic's growing integration with U.S. infrastructure. The company was recently named a participant in the U.S. Department of Commerce’s program to publish economic data on-chain, allowing developers to access key statistics like inflation and GDP directly on the Sonic network.

Despite these strategic advancements, the S token has faced significant market headwinds. Since its launch in January 2025, the token has fallen nearly 69%, with a current market capitalization of approximately $892 million, according to CoinGecko data.