Sonic Labs has received approval to issue $200 million in S tokens to enter the traditional finance (TradFi) market, enhancing its presence in US capital markets. The proposal, which saw a 99.99% approval from voters, includes plans to create a US-based company and launch an exchange-traded product listed on Nasdaq. Sonic will allocate $100 million for a strategic reserve in a Nasdaq PIPE vehicle and $50 million for an S token-tracking exchange-traded product, which will be custodied by BitGo. The company aims to hire a CEO and team in New York, focusing on engaging with US regulations and establishing Sonic USA LLC to facilitate its TradFi initiatives. Sonic's shift corresponds with a broader trend where companies are leveraging traditional financial instruments to strengthen their positions in the crypto market. The tokenomics inherited from Fantom have reportedly limited Sonic’s opportunities for key partnerships and investments in the past, prompting this strategic transition to traditional finance.

Source 🔗