The post Sonic Labs Drop USD Stablecoin Plan Amid US Regulations – Here’s Why! appeared first on Coinpedia Fintech News
Sonic Labs has suddenly dropped its plan to launch a USD-backed algorithmic stablecoin, shifting its focus to a UAE dirham-backed alternative. The decision comes as stablecoin regulations tighten in the US, thus, the company is shifting its focus to the United Arab Emirates (UAE) dirham.
Sonic Labs’ Sudden U-Turn
Just a week after hinting at launching a USD-based algorithmic stablecoin with an annual percentage rate (APR) of up to 23%, Sonic Labs has now dropped the plan. Co-founder Andre Cronje confirmed this in a post on X, citing regulatory concerns.
We will no longer be releasing a USD based algorithmic stable coin.
Completely unrelated, we will be releasing a mathematically bound numerical Dirham which is settled and denominated in USD, which is definitely not a USD based algorithmic stable coin. https://t.co/NlLsT5IqoE
— Andre Cronje (@A
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