Wyoming-based Stablecoin Makes Its Debut on Ethereum, Solana, and Avalanche Blockchain Networks
Wyoming Launches First U.S. State-Issued Stablecoin: The Frontier Stable Token (FRNT)
The U.S. state of Wyoming has made history by launching the Wyoming Frontier Stable Token (FRNT), a state-issued stablecoin, on August 19, 2025. This groundbreaking digital token is pegged 1:1 to the U.S. dollar, offering a unique approach to stablecoins in the American market.
The FRNT is issued by the Wyoming Stable Token Commission, a public entity, making it the first U.S. state-issued stablecoin. This public backing aims to increase trust and regulatory clarity, setting it apart from other U.S. stablecoins issued by private companies.
The reserves backing FRNT are held in trust by the state and managed by Franklin Advisers. Regular financial audits and attestations by The Network Firm ensure transparency and accountability. The FRNT is designed to be interoperable across multiple blockchains, including Ethereum, Solana, Avalanche, Polygon, Arbitrum, Optimism, and Base, providing users with increased flexibility.
Key distinctions of FRNT versus other U.S. stablecoins include state government issuance, a legal designation as a "stable token" rather than a coin, mandatory overcollateralization, and multi-blockchain availability at launch.
Unlike private stablecoins issued by companies, FRNT is government-backed at the state level. It is also backed by money held in trust, not a sovereign pledge, avoiding constitutional issues related to a state coining money. The 102% reserve requirement by law provides extra financial backing above typical private stablecoins.
The FRNT was launched during the Wyoming Blockchain Symposium, an invite-only event. It debuted on seven blockchains, including Ethereum, Solana, Avalanche, Polygon, Arbitrum, Optimism, and Base. The Frontier Stable Token (FRNT) was previously known as the Wyoming Stable Token (WYST).
The FRNT was built using LayerZero's Omnichain Fungible Token (OFT) standard, the same as PayPal's PYUSD stablecoin. Tokens issued under the OFT standard can potentially exist on over 110 blockchains that LayerZero supports.
The FRNT is backed by cash and U.S. Treasuries, with interest generated by its reserves going to Wyoming's School Foundation Fund. It could potentially share a portion of the revenue its reserves generate with holders in the future.
Despite its innovative nature, the FRNT has faced criticism from some U.S. conservatives, who liken it to a central bank digital currency (CBDC). However, Anthony Apollo, executive director of Wyoming's Stable Token Commission, has refuted this comparison, asserting that FRNT is not a CBDC because it cannot be issued like central banks create cash.
The FRNT's multi-chain availability and strong overcollateralization model make it a promising solution for maintaining a U.S. dollar peg, contrasting with private-sector U.S. stablecoins that typically lack direct government issuance or mandated reserve requirements.
While the comparison between FRNT and a central bank digital currency might not resonate with New York coffee buyers, it could be significant for people overseas dealing with high inflation or authoritative governments, according to LayerZero co-founder Bryan Pellengrino. Just a few years ago, it was uncertain whether something like FRNT would be permitted in the U.S., as indicated by the regulatory scrutiny following the $40 billion collapse of Terra's ecosystem in 2022, marked by the meltdown of its TerraUSD (UST) algorithmic stablecoin.
As Wall Street firms consider their own stablecoin offerings, the FRNT could pave the way for a new era of government-backed digital currencies in the United States. U.S. Securities and Exchange Commission Chair Paul Atkins is expected to speak at the Wyoming Blockchain Symposium, offering insights into the regulatory landscape for digital assets.
However, the state of Wyoming may challenge requests to seize or freeze funds if they conflict with the state's constitutional mandates, potentially adding an additional layer of protection for FRNT holders. The FRNT is a pioneering public-sector stablecoin with enhanced regulatory clarity and backing, designed for multi-chain use and with a strong overcollateralization model to maintain its U.S. dollar peg.
