TLDR Sonic Labs passed a governance proposal with 99.98% approval to issue $200 million in S tokens for US capital markets expansion The plan includes $50 million for a regulated S token ETF, $100 million for a Nasdaq PIPE vehicle, and $150 million for US operations Sonic Labs will establish Sonic USA LLC with New [...] The post Sonic Labs Approves $200 Million Plan for US Capital Markets Expansion appeared first on CoinCentral.TLDR Sonic Labs passed a governance proposal with 99.98% approval to issue $200 million in S tokens for US capital markets expansion The plan includes $50 million for a regulated S token ETF, $100 million for a Nasdaq PIPE vehicle, and $150 million for US operations Sonic Labs will establish Sonic USA LLC with New [...] The post Sonic Labs Approves $200 Million Plan for US Capital Markets Expansion appeared first on CoinCentral.

Sonic Labs Approves $200 Million Plan for US Capital Markets Expansion

4 min read

TLDR

  • Sonic Labs passed a governance proposal with 99.98% approval to issue $200 million in S tokens for US capital markets expansion
  • The plan includes $50 million for a regulated S token ETF, $100 million for a Nasdaq PIPE vehicle, and $150 million for US operations
  • Sonic Labs will establish Sonic USA LLC with New York-based team and hire a US CEO for regulatory compliance
  • The company plans to update tokenomics to make S tokens more deflationary through increased gas fee burns
  • S token has dropped 69% since launch in January 2025, prompting the need for new funding strategies

Sonic Labs has received overwhelming community approval for its ambitious plan to enter traditional finance markets. The blockchain company behind the layer-1 Sonic network passed a governance proposal on Sunday with 99.98% voter support from 105 wallets.

The proposal authorizes the issuance of $200 million worth of S tokens to fund the company’s expansion into US capital markets. This represents a major strategic shift for the blockchain firm as it seeks to bridge crypto and traditional finance.

The voting process required a quorum of 700 million S tokens to be valid. Community members used 99.99% of participating tokens to approve the comprehensive expansion plan.

Sonic Labs plans to allocate the funds across three main initiatives. The company will dedicate $50 million to launch a regulated exchange-traded product tracking the S token through a partnership with a top-tier ETF provider.

The ETF provider must have over $10 billion in assets under management. BitGo will serve as the custodian for the fund, providing institutional-grade security for the investment vehicle.

A second allocation of $100 million will support a Nasdaq Private Investment in Public Equity (PIPE) vehicle. This strategic reserve will be used to purchase S tokens through open market and over-the-counter transactions.

The PIPE structure requires tokens to remain locked for a minimum of three years. This mechanism aims to enhance Sonic Labs’ credibility within traditional finance circles.

Establishing US Operations

Sonic Labs will create Sonic USA LLC as its American subsidiary with $150 million in S tokens allocated separately from the main funding. The company plans to hire a US-based CEO and establish operations in New York.

The US team will focus on regulatory compliance and building partnerships in Washington DC. Sonic Labs has already structured the Delaware entity and prepared it for operations.

The expansion addresses what the company describes as “continuous increase of institutional demand” from US markets for the S token. Traditional finance integration represents a reversal of typical crypto adoption patterns.

Most publicly listed companies have added crypto to their balance sheets through spot ETFs and direct purchases. Sonic’s approach flips this model by using traditional financial instruments to strengthen its position in crypto markets.

Tokenomics Challenges Drive Change

The Sonic blockchain launched in December 2024 after rebranding from the Fantom Opera network. FTM tokens were swapped for S tokens at a 1:1 ratio during the migration process.

However, the Fantom Foundation held less than 3% of the original token supply, creating funding constraints. Most layer-1 and layer-2 blockchain teams retain 50% of initial token supply for strategic initiatives.

Sonic’s limited token allocation prevented partnerships with major companies including GameStop, Robinhood, and Polymarket. The company was forced to purchase its own tokens on the open market for strategic investments.

The funding shortage also delayed listings on major cryptocurrency exchanges. Sonic described its situation as having “2018 tokenomics” when it needs “2025 tokenomics” to compete effectively.

The S token has declined 69% since its January launch, according to CoinGecko data. The poor performance has increased pressure on the company to secure additional funding sources.

Making S Token More Deflationary

Sonic Labs plans to update its gas fee mechanism to offset new token issuance. A larger share of transaction fees will be directed toward token burns, creating deflationary pressure on the supply.

This adjustment aims to balance new token creation with supply reduction. The company believes this approach allows expansion without harming existing token holders.

The US Department of Commerce recently listed Sonic as a participant in its blockchain program for publishing economic data onchain. The partnership uses Chainlink and Pyth oracle services to provide macroeconomic statistics directly on the Sonic network.

The post Sonic Labs Approves $200 Million Plan for US Capital Markets Expansion appeared first on CoinCentral.

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