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Sonic Labs Passes Vote to Pursue U.S. ETF and Nasdaq PIPE with BitGo Custody

John Kiguru by John Kiguru
September 1, 2025
Sammy Macharia

Edited by Sammy Macharia on September 1, 2025

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  • Sonic holders approved a $150 million plan for an S-linked ETP or ETF and support for a Nasdaq PIPE.
  • The vote authorizes formation of Sonic USA and appoints BitGo as custodian for compliant investor access.

Sonic Labs has passed its first governance proposal to expand into the United States, clearing a path for an exchange traded product that would track the S token, a Nasdaq private investment in public equity transaction, and the creation of a U.S. operating entity called Sonic USA. The community vote concluded on August 31, 2025.

Token holders approve $150 million allocation for U.S. market entry

The approved plan authorizes up to $150 million in resources to support the expansion. Documents outline a three part structure that includes an allocation toward a regulated S linked ETP or ETF, capital for a prospective Nasdaq PIPE, and funding to capitalize Sonic USA for regulatory, legal, and hiring needs.

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S🇺🇸nic is coming.

Governance passed. Stay tuned. pic.twitter.com/3t3cRFze1u

— Sonic (@SonicLabs) August 31, 2025

Several disclosures and coverage summaries describe a $50 million ETP or ETF sleeve and a $100 million PIPE, with additional S token issuance to support the new entity. Voting materials and industry reports indicate the measure passed with broad support near the August 31 deadline.

BitGo appointed custodian for prospective S linked product

BitGo will act as custodian for the ETP or ETF structure envisaged in the proposal. The mandate is intended to satisfy institutional due diligence requirements and to enable qualified custody of the underlying digital asset for both institutional and retail distribution channels.

Under the contemplated model, the ETP or ETF would provide exposure to the S token within a regulated wrapper that is designed to align with U.S. securities and exchange rules. Any launch would remain subject to issuer selection, filings, and regulatory approvals.

The PIPE component would target a capital partnership with a Nasdaq listed company. In a typical PIPE, accredited investors purchase newly issued securities from a public company at an agreed valuation, with proceeds earmarked for strategic initiatives.

Sonic Labs’ plan frames the PIPE as a bridge between on chain liquidity and public market capital formation, while leaving counterparties and timetable undisclosed. The governance outcome authorizes the team to pursue documentation and counterparties once market conditions and regulatory feedback allow.

Sonic Labs has passed its first governance proposal to expand into U.S. traditional capital markets, enabling a regulated ETP/ETF tracking S, supporting a Nasdaq DAT, and backing the new Sonic USA entity. BitGo will serve as custodian to ensure compliant access for institutional…

— Wu Blockchain (@WuBlockchain) September 1, 2025

Establishing Sonic USA is intended to house compliance, investor relations, and prospective product operations. Filings cited by industry outlets reference the entity as a vehicle for licensing, product registration, and coordination with ETP or ETF service providers.

Community materials also discuss token issuance mechanics and treasury management to fund the initiative, alongside measures meant to address dilution risk through supply controls and burn features described in the governance text.

With the vote completed, next steps include selecting an exchange traded product sponsor, formalizing BitGo’s custody engagement, and advancing regulatory submissions.

Market participants will watch for clarity on the ETF or ETP design, the PIPE counterparty, and the operational build out of Sonic USA, all of which will determine the pace and scope of access to S for U.S. investors.

At the time of press, Sonic (S) is trading at exactly $0.314983, down precisely $0.004690 (-1.467 %) from its previous close. Within the past 24 hours, it reached a high of $0.320770 and a low of $0.303566.

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shield icon At BTC Live, our editorial process is built on accuracy, transparency, and reliability. Every article is backed by verified sources and reviewed by experienced editors and technology specialists. This rigorous approach guarantees content that is trustworthy, relevant, and valuable for our readers.
John Kiguru

John Kiguru

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John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space.
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