Wyoming, a blockchain-friendly US state, has made a first in cryptocurrency history. The state has officially launched its stablecoin, Frontier Stable Token (FRNT), fully backed by reserves. This development made history as the first stablecoin issued by a public institution in the US.
Wyoming Governor and Wyoming Stable Token Commission Chairman Mark Gordon emphasized in a statement that this step is a critical milestone for the state's economy:
"The mainnet launch of the Frontier Stable Token will provide our citizens and businesses with a modern, efficient, and secure means of payment in the digital age."
Published on seven different blockchains
Wyoming's stablecoin isn't limited to a single network. FRNT was launched simultaneously on Ethereum, Solana, Avalanche, Arbitrum, Optimism, Base, and Polygon. This multi-network strategy will allow the token to gain broader access and use across various ecosystems.
However, FRNT is not yet directly tradable. However, according to the press release, the token is expected to be available on the Solana network via the Kraken exchange and on the Avalanche network via Rain's Visa integrated card platform within a few days.
Fully reserve-backed, over-collateralized
Reserve transparency is often a major topic of discussion in the stablecoin market. The Wyoming government aims to establish trust in this area. FRNT is backed by US dollars and short-term US Treasury bonds. A 2% over-collateralization policy provides additional protection against potential volatility.
The reserves are managed by Franklin Advisers, while Fireblocks is responsible for the blockchain infrastructure, LayerZero for the token issuance process, Inca Digital for open-source intelligence, and The Network Firm for auditing and monthly reporting. All of these partnerships were selected through a formal bidding process.
Compliant with Federal Regulations
FRNT's launch is part of the recently passed GENIUS Act of the United States. This law establishes clear regulations for stablecoin issuers and aims to increase market reliability. Stablecoins currently constitute a $260 billion asset class. Crypto market research firm Keyrock predicts that the stablecoin market could reach a trillion-dollar scale within the next few years and fundamentally disrupt global payment systems.
Wyoming has become one of the most innovative states in the US in recent years with its blockchain-friendly legislation. The Wyoming Stable Token Commission, established in 2023, has been working on the development of FRNT and its integration into public finance. Last month, the state successfully tested real-time payments to a government contractor through the Avalanche-based Hashfire system.
With this move, Wyoming is taking a leading role in the publicly backed stablecoin space not only in the US but also globally.
