Sonic Labs, the team behind the Sonic blockchain, has secured approval to issue $200 million worth of its S tokens in a bold push into traditional finance. The move paves the way for a Nasdaq-listed investment vehicle and a new exchange-traded product (ETP), positioning Sonic to compete directly with Wall Street heavyweights.

The proposal passed with overwhelming support, as 99.99% of voting wallets backed the plan, easily surpassing the 700 million token quorum. Sonic will allocate $100 million in tokens to build a strategic reserve for a Nasdaq PIPE (Private Investment in Public Equity) and $50 million for an S token-tracking ETP through a top-tier ETF provider with over $10 billion in assets. Custody for the fund will be handled by BitGo.

As part of the expansion, Sonic will establish Sonic USA LLC and hire a New York-based CEO and team to lead operations and policy engagement in Washington, D.C. Another $47.7 million in tokens will be set aside to bootstrap its U.S. operations.

Unlike many companies that have added crypto to their balance sheets, Sonic is flipping the narrative by using TradFi tools to strengthen its blockchain presence. The team also admitted that outdated tokenomics inherited from its Fantom Opera rebrand have limited its growth. With less than 3% of supply originally retained, Sonic struggled to pursue partnerships and exchange listings. The company now plans “2025 tokenomics” to fix this gap.

To ease concerns over dilution, Sonic will update its gas fee system to burn a larger portion of fees, making the S token more deflationary over time.

Despite its bold ambitions, the S token has struggled, falling nearly 69% since launch. Still, with Sonic’s participation in the U.S. Commerce Department’s blockchain program, which puts economic data onchain, the company believes it is ready to transform both crypto and finance.