Wyoming has become the first US state to launch a blockchain-based stablecoin, issuing the Frontier Stable Token (FRNT) on several blockchain networks, with reserves backed by US dollars and short-term treasuries.
The Wyoming Stable Token Commission announced the launch of the FRNT mainnet in a state press briefing on Tuesday. The stablecoin launch event is the first time a public entity in America has issued a blockchain-based stable token.
The token will be made available in the coming days through Wyoming-domiciled exchange Kraken on the Solana blockchain. It will also be distributed via blockchain-backed payment card platform Rain, coupled with Visa-integrated services on Avalanche.
Governor Mark Gordon, the chairman of the Commission, called the launch a culmination of Wyoming’s years-long push into digital asset regulation.
“Today, Wyoming reaffirms its commitment to financial innovation and consumer protection. The mainnet launch of the Frontier Stable Token will empower our citizens and businesses with a modern, efficient, and secure means of transacting in the digital age,” Gordon told the press.
FRNT structure and collateralization
According to the Wyoming Commission’s statement , the Frontier Stable Token will be fully backed by US dollars and short-duration treasuries, held in trust for token holders. Furthermore, state law mandates that FRNT maintain 2% overcollateralization.
Unlike commercial stablecoins, the interest generated from reserves will not flow to private companies. Instead, funds will be diverted to Wyoming’s School Foundation Fund every quarter to benefit state residents.
Senator Chris Rothfuss, a Democrat and backer of Wyoming’s blockchain legislation , said in July that the token could eventually share some of its reserve earnings directly with holders. That feature, however, was not activated at launch, and word around the commission says it is still under development.
Legal and regulatory distinction
FRNT is not regulated under the federal GENIUS Act, the stablecoin framework passed by Congress last month. Supporters say this is because Wyoming is a sovereign public entity rather than a private business. The distinction could give the state flexibility in managing the token without the restrictions faced by corporate issuers.
“FRNT proves that governments can do more than regulate, they can innovate,” said Anthony Apollo, Executive Director of the Wyoming Stable Token Commission. He added that the state is prepared to challenge any requests to seize or freeze funds that conflict with Wyoming’s constitutional mandates.
Apollo will be speaking in the Crypto In America podcast today to share more details of the stablecoin’s dynamics, as reported by FOX News correspondent Eleanor Terrett.
In collaboration with LayerZero, the Commission launched FRNT simultaneously on seven blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana. The decision followed its “rigorous selection process,” for its transparency and accessibility across the networks.
LayerZero facilitated token issuance, Fireblocks provided blockchain infrastructure, Franklin Advisers managed reserves, Inca Digital contributed open-source intelligence, and The Network Firm was tasked with financial audits and monthly attestations.
FRNT was built using LayerZero’s Omnichain Fungible Token (OFT) standard, which also powers PayPal’s PYUSD stablecoin. Tokens based on the standard can operate across more than 110 blockchains supported by LayerZero.
The debut of FRNT comes just three years after the collapse of Terra’s $40 billion ecosystem in 2022, which triggered widespread skepticism and regulatory scrutiny of stablecoins.
Despite the enthusiasm, some US conservatives led by House Majority Whip Tom Emmer have likened FRNT to a mere central bank digital currency. The Republicans argue that the state-backed digital asset could encroach on financial privacy and sovereignty.
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