Wyoming has made history by becoming the first U.S. state to launch its own blockchain-based stablecoin, the Frontier Stable Token (FRNT). This digital currency, backed by U.S. dollars and short-term treasuries, was announced by the Wyoming Stable Token Commission. The launch marks a significant step for a public entity in America into the digital asset space.
Key Details of the FRNT Launch
- Availability: The FRNT stablecoin will be available on the Solana blockchain through the Wyoming-based exchange Kraken and on the Avalanche network via the blockchain payment card platform Rain, which integrates with Visa.
- Backing and Structure: The token is fully backed by U.S. dollars and short-term treasuries held in a trust. It is also mandated by state law to maintain 2% overcollateralization to ensure its stability.
- Revenue Model: Unlike commercial stablecoins where interest on reserves goes to private companies, the revenue generated from FRNT's reserves will be directed to Wyoming's School Foundation Fund to benefit state residents.
- Regulatory Status: FRNT is not regulated under the federal GENIUS Act, as supporters argue that as a sovereign public entity, Wyoming is exempt from the restrictions placed on private businesses. This distinction gives the state more flexibility in managing the token.
- Technological Partners: The stablecoin was launched simultaneously on seven blockchains—Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana—in collaboration with LayerZero, which provided its Omnichain Fungible Token (OFT) standard. Other partners include Fireblocks for infrastructure, Franklin Advisers for reserve management, and The Network Firm for financial audits.
Political and Public Reaction
Governor Mark Gordon called the launch a "culmination of Wyoming’s years-long push into digital asset regulation," highlighting the state's commitment to financial innovation. However, the move has drawn criticism from some conservatives, including House Majority Whip Tom Emmer, who have compared the state-backed digital asset to a central bank digital currency (CBDC), raising concerns about potential impacts on financial privacy.
August 2025, Cryptoniteuae