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Wyoming state announced on Tuesday the mainnet launch of its U.S. dollar stablecoin Frontier Stable Token (FRNT), claiming it to be the first fully-reserved stablecoin in the country issued by a public entity. “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,” Mark Gordon, governor of Wyoming and chairman of the Wyoming Stable Token Commission, said in a statement.
The token has already been deployed on the Arbitrum, Ethereum, Base, Avalanche, Solana, Optimism, and Polygon networks, blockchain data on the project’s website shows. The token is designed to be 2% over-collateralized, backed by U.S. dollars and short-duration U.S. treasuries held in trust. The token will be available for the broader public in the coming days on Solana through Wyoming-domiciled exchange Kraken and Rain’s Visa-integrated card platform on the Avalanche blockchain, the press release said.
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The announcement, coincided with the Wyoming Blockchain Symposium conference in Jackson Hole, Wyoming, follows the U.S. enacting federal laws with the GENIUS Act to regulate the fast-growing stablecoin sector and issuers. Stablecoins are a $260 billion class of cryptocurrencies with prices tied to an external asset like the U.S. dollar. They could become a trillion dollar market in the next few years and disrupt payments flows as adoption in the real economy expands, crypto trading firm Keyrock projected in a recent report.
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Wyoming, known for its forward stance on blockchain legislation, created the Wyoming Stable Token Commission in 2023 to develop and issue a U.S. dollar-backed token and oversee its integration into public finances. Last month, the state conducted a test transaction for real-time government contractor payment on the Avalanche-based Hashfire. The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations, all selected through a procurement process, the press release said.
