The post Sonic Labs ditches algorithmic stablecoin in favor of UAE dirham alternative appeared on BitcoinEthereumNews.com.

Sonic Labs is ditching its algorithmic stablecoin in favor of a UAE dirham alternative, its co-founder, Andre Cronje, has confirmed. The platform had initially harboured plans to launch a US dollar pegged algorithmic stablecoin, but has now opted to instead develop an alternative that will be denominated in the United Arab Emirates dirham. The Sonic Labs co-founder had initially confirmed that the company was working on the dollar-pegged stablecoin, noting that the token would include an annual percentage rate (APR) of up to 23%. “POC looks good. Yielding > 200% APR @ 10m tvl, around 23.5% APR @ 100m, steady at around 4.9% at 1bn+. Will scale up and get the team for a full release,” Cronje said at the time. However, a week later, Cronje announced a change in the course, noting that the company would no longer be going ahead with the move, while announcing a different course of action. Sonic Labs announces shift to UAE dirham alternative In an X post on Friday, the Sonic Labs co-founder gave insight into the new kind of stablecoin the company is looking into. “We will no longer be releasing a USD-based algorithmic stablecoin. 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 stablecoin,” his post on X read. 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 (@AndreCronjeTech) March 28, 2025 The shift in development is coming after the United Arab Emirates (UAE) announced the launch of its digital dirham central bank digital currency (CBDC) in the fourth quarter…

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Filed under: News - @ March 29, 2025 8:09 pm