Sonic Labs cancels the plan for a dollar-pegged algorithmic stablecoin and intends to develop an alternative priced in UAE dirhams

ChainCatcher news, according to Cointelegraph, Sonic Labs has canceled its plan to launch an algorithmic stablecoin pegged to the US dollar and instead opted to develop an alternative stablecoin product priced in UAE Dirhams.

Sonic Labs co-founder Andre Cronje confirmed the news on the X platform, stating: "We will no longer issue an algorithmic stablecoin pegged to the US dollar, but will issue an alternative linked to the digital Dirham, which is settled in US dollars but is absolutely not an algorithmic stablecoin based on the US dollar."

It is reported that the UAE has previously announced plans to launch a central bank digital currency (CBDC) digital Dirham in the fourth quarter of 2025.