Sonic Labs cancels plans to launch algorithmic stablecoin pegged to USD, opts to develop alternative denominated in UAE dirham

Sonic Labs has canceled its plan to launch an algorithmic stablecoin pegged to the US dollar, opting instead to develop an alternative currency priced in UAE dirhams. Sonic Labs co-founder Andre Cronje confirmed the news and posted on social media, saying, "We will no longer issue algorithmic stablecoins based on the US dollar, but will issue mathematical bindings of numerical dirhams settled and priced in US dollars, which is definitely not a US dollar-based algorithmic stablecoin." Earlier, the UAE announced that it will launch a digital dirham central bank digital currency (CBDC) in the fourth quarter of 2025.