On March 29, according to Cointelegraph, Sonic Labs officially canceled the plan to launch a USD-pegged Algorithmic Stablecoin and will instead focus on developing a new stablecoin valued at the UAE dirham (AED).

Reason for Canceling USD Algorithmic Stablecoin

This decision was confirmed by Andre Cronje, co-founder of Sonic Labs, in a post on the X platform. He emphasized:

"We will not release a USD-pegged Algorithmic Stablecoin. Instead, we will launch a product related to the digital dirham, paid in USD but certainly not a USD-based Algorithmic Stablecoin."

Although there are no detailed specifics about the exact reason for this change, it can be seen that launching a USD-pegged Algorithmic Stablecoin involves many risks, especially in the context of the stablecoin market being increasingly closely monitored by global regulators, including the US Federal Reserve (Fed) and the US Securities and Exchange Commission (SEC).

Additionally, shifting towards a stablecoin related to the UAE dirham could be a strategic move to leverage the strong development of the digital financial ecosystem in the Middle East, especially in the UAE. According to a previous announcement, the UAE plans to deploy a digital dirham in the fourth quarter of 2025.