Wyoming launches first state-backed stablecoin on seven blockchains

After years of research, the Wyoming Stable Token Commission has unveiled the mainnet launch of its first official state-backed stablecoin. The so-called Frontier Stable Token (FRNT), marking the first time a U.S. state has issued a blockchain-based, fiat-pegged token meant to be used by retail and enterprises alike, according to an announcement on Tuesday.

"FRNT is designed to provide secure, transparent, and efficient digital transactions for individuals, businesses, and institutions — worldwide," the commission wrote in a statement . "This groundbreaking initiative cements Wyoming at the forefront of digital finance and blockchain innovation."

Indeed, the Cowboy State has long been ahead of the curve when it comes to crypto regulation, including in recognizing DAOs as legal entities, creating a framework for "crypto-banks" under the Special Purpose Depository Institutions charter, and passing the state’s Stable Token Act — all meant to draw economic activity to the region.

The move comes about one month after President Donald Trump signed the first federal stablecoin bill into law, creating a framework for issuers to operate in the country and opening the floodgates to interest from financial institutions and crypto incumbents looking to interact with the sector.

The total USD-pegged stablecoin supply sits at around $265 billion, according to The Block's Data Dashboard.

In 2023, the Wyoming Stable Token Commission began studying the creation of a stablecoin following the passage of the Wyoming Stable Token Act, which tasked the organization with researching and developing a framework for a state-backed stablecoin.

The Frontier Stable Token is overcollateralized by cash and short-term U.S. Treasurys, holding a minimum reserve of 102% to ensure stability at Franklin Advisers. It will trade initially on seven blockchains — Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana — that maintain interoperability through the LayerZero and Fireblocks communications protocols.

In the coming days, FRNT will be available for purchase on Solana via Kraken and on Avalanche via Rain’s Visa-integrated card platform. The commission previously tapped Inca Digital to provide surveillance and analytics services for the stablecoin.

In July, the commission began a pre-launch testing period using 11 blockchains, adding Aptos and Sei as candidate blockchains. The commission has also considered alternative versions of the stablecoin called Wyoming Electronic Stable Token (WEST) and Wyoming Stable Token (WYST).