Wyoming Launches First U.S. State-Issued Stablecoin Backed by 102% Reserves

Wyoming has become the first U.S. state to launch a fully-backed, government-issued stablecoin, the Frontier Stable Token (FRNT), on major blockchains including Avalanche and Solana. Announced on August 19, 2025, the initiative was spearheaded by the Wyoming Stable Token Commission (WSTC) under the authority of Governor Mark Gordon, with a $5.8 million budget allocated to support the project. The token is 102% overcollateralized with U.S. dollars and short-term Treasuries, ensuring stability and regulatory compliance [2].

The stablecoin, developed in collaboration with private sector partners responsible for custody, issuance, and financial audits, is a product of the Wyoming Stable Token Act, passed in March 2023. This act laid the legal and governance groundwork for the launch of FRNT, which is now available to the public and accepted via Visa, enhancing its usability in real-world transactions [1].

By introducing a government-issued stablecoin, Wyoming has set a national precedent not previously seen in the U.S., where stablecoins like USDT and USDC are privately issued and lack direct public oversight. FRNT is expected to increase liquidity on the blockchains it operates on and may influence broader adoption of state-backed digital currencies. The initiative aligns with Wyoming’s broader strategy to lead in blockchain innovation and modernize its financial infrastructure [3].

Governor Gordon emphasized that the stablecoin would empower citizens and businesses with a secure, efficient means of transacting in the digital age. The interest earned from the stablecoin’s reserves is projected to be reinvested in public services, with reports indicating that a portion will support the Wyoming School system [6]. This model represents a novel approach to integrating blockchain technology into state-level fiscal planning, potentially inspiring other states to explore similar initiatives.

Analysts have drawn comparisons between the launch of FRNT and early disruptive technological milestones, likening it to the “iPhone moment” for stablecoins. The move reflects a growing openness among governments to embrace digital assets and signals a shift in the broader adoption of blockchain-based financial tools. While FRNT is currently limited to Wyoming, discussions are already emerging around its potential for replication in other jurisdictions [4].

Wyoming’s launch of FRNT underscores its commitment to financial innovation while maintaining strict regulatory standards. The transparent, government-backed model of the stablecoin distinguishes it from many private-sector offerings, adding a layer of accountability and public trust [5]. The initiative could serve as a blueprint for other states aiming to leverage digital assets to enhance economic efficiency and financial inclusion.

Wyoming’s entry into the digital currency space marks a significant step in the evolution of stablecoins and government-backed digital assets. As the state continues to refine the model, its impact on both state-driven digital currencies and the broader decentralized finance landscape is expected to grow.

Source:

[1] JD Supra, https://www.jdsupra.com/legalnews/wyoming-debuts-first-state-issued-3377184/

[2] Barchart.com, https://www.barchart.com/story/news/34375908/wyoming-is-launching-its-frontier-stablecoin-should-you-buy-the-state-backed-crypto-here

[3] The Coin Republic, https://www.thecoinrepublic.com/2025/08/24/breaking-wyoming-launches-frontier-stable-token-frnt-stablecoin-with-avalanche-rain/

[4] Forbes, https://www.forbes.com/sites/digital-assets/2025/08/25/stablecoins-hit-their-iphone-moment-from-wyoming-to-japan-to-metamask/

[5] AInvest, https://www.ainvest.com/news/wyoming-launches-frnt-state-backed-stablecoin-102-overcollateralized-2508/

[6] OKX, https://www.okx.com/learn/stablecoin-avalanche-token-wyoming-frnt