Wyoming Issues First State-Backed Stablecoin FRNT Overcollateralized 2 Percent

Wyoming has launched the Frontier Stable Token (FRNT), marking the first time a U.S. state has issued a blockchain-based stablecoin backed by the state government. The token, launched on August 19, 2025, is fully collateralized with U.S. dollars and short-duration U.S. Treasuries, and is mandated to maintain a 2% overcollateralization under Wyoming law [1]. This design ensures stability and provides an additional layer of security for users. The Wyoming Stable Token Commission, chaired by Governor Mark Gordon, oversees the project and has been tasked with issuing fully backed, state-compliant stable tokens [1].

The token’s launch is part of a broader initiative to modernize Wyoming’s financial infrastructure, positioning the state as a leader in blockchain and digital asset regulation. Since 2016, Wyoming has passed over 45 pieces of legislation related to cryptocurrency and digital assets [1]. FRNT is designed to facilitate secure, transparent, and efficient digital transactions for individuals, businesses, and institutions globally [1].

To ensure transparency and accountability, monthly financial attestations and audits will be conducted by The Network Firm, while Franklin Advisers will manage the token’s reserves [1]. The state has also taken a multi-chain approach by launching FRNT on seven major blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana [1]. This strategy aims to maximize accessibility and resilience, with the selection process overseen by Wyoming’s Select Committee on Blockchain.

Public availability of FRNT will begin through Kraken, a Wyoming-based exchange, with initial access on the Solana blockchain [1]. Additionally, the token will be integrated into Rain’s Visa-linked card platform on Avalanche, enabling users to spend FRNT at any location that accepts Visa, including online, in-store, and via Apple or Google Pay [1]. During the SALT Wyoming Blockchain Symposium, attendees were already able to onboard by completing KYC and receiving Rain-issued Visa cards [1].

Wyoming’s initiative is not just a technological innovation but also a policy shift. The state piloted real-time contractor payments using FRNT, reducing transaction times from 45 days to seconds [1]. This has demonstrated the practical benefits of integrating stablecoins into public finance. The GENIUS Act, now in law, provides a legal framework for such innovations and could serve as a model for other states [1].

The launch has also sparked discussions about the balance of power between state and federal authorities in the financial sector. While FRNT operates within the legal boundaries established by the GENIUS Act, it raises questions about the broader implications of state-issued digital currencies and the potential for a decentralized, multi-jurisdictional monetary system [6]. Nonetheless, Wyoming’s approach emphasizes compliance, transparency, and security, with FRNT being fully audited and backed by overcollateralized reserves [1].

The broader financial industry is also watching the developments closely. A recent report from Morningstar warns that the rise of stablecoins could disrupt traditional banking models by drawing deposits away from banks and reducing their ability to fund new loans [1]. The cost advantages of stablecoin-based transactions could also threaten revenue from traditional payment systems [1].

Wyoming’s stablecoin initiative represents a significant step forward in the evolution of digital currencies and public finance. As the first in-production use case for a state-backed digital dollar, FRNT may serve as a model for other states seeking to innovate in the digital financial space [1]. Its success could influence national regulatory discussions and encourage further experimentation with digital payment systems that align with traditional financial frameworks [1].

Source:

[1] Wyoming Launches First State-Issued Stablecoin (https://www.crowdfundinsider.com/2025/08/247753-wyoming-to-issue-its-own-stablecoin-frnt/)

[6] Wyoming's Stablecoin Launch Sparks Debate Over State (https://www.ainvest.com/news/wyoming-stablecoin-launch-sparks-debate-state-federal-financial-control-2508/)