Wyoming Launches First U.S. State-Issued Stablecoin Backed by U.S. Dollars and Treasuries

Wyoming has become the first U.S. state to launch a government-issued stablecoin, the Frontier Stable Token (FRNT). The token, announced on August 19, 2025, is fully backed by U.S. dollars and short-term U.S. Treasuries, with an additional 2% overcollateralization to ensure stability. The Wyoming Stable Token Commission, chaired by Governor Mark Gordon, oversees the initiative, with Franklin Advisers managing reserve operations. FRNT aims to provide instant transactions and reduced fees for consumers and businesses, promoting a more efficient and accessible financial infrastructure [1][3][6].

The stablecoin is operational on seven major blockchain networks: Ethereum, Solana, Arbitrum, Avalanche, Polygon, Optimism, and Base. This multi-chain deployment was facilitated by LayerZero, a blockchain interoperability protocol, enabling seamless cross-chain interactions. The strategic decision to deploy across multiple chains enhances FRNT’s utility, making it accessible to a broader range of users, including both retail and institutional participants [4][5].

Wyoming’s move reflects its broader efforts to lead in blockchain innovation. The state has previously passed legislation, including the Genius Bill, to create a legal and regulatory framework for digital assets. Governor Gordon emphasized that FRNT represents a balance between innovation and consumer protection, offering a secure digital medium for transactions. The initiative is part of Wyoming’s long-term strategy to modernize public services through technology, while ensuring transparency and compliance [6][8].

Unlike commercial stablecoins, FRNT does not channel reserve-generated interest to private entities. Instead, quarterly earnings from reserves are directed to Wyoming’s School Foundation Fund, benefiting state residents. While some lawmakers have suggested that token holders might eventually receive a share of the reserve earnings, this feature remains under development and was not activated at launch [3][6].

The launch of FRNT comes in the wake of heightened regulatory scrutiny following the collapse of Terra’s $40 billion stablecoin ecosystem in 2022. Despite skepticism, Wyoming’s initiative is not subject to the federal GENIUS Act, which recently established a stablecoin framework at the national level. Commission officials argue that as a public entity, Wyoming is not bound by the same restrictions as private companies, allowing for greater flexibility in token management [1][4].

The move has drawn mixed reactions. While some view it as a pioneering step in public-sector digital finance, others, including certain U.S. conservatives, have likened FRNT to a central bank digital currency, raising concerns about privacy and sovereignty. Nonetheless, the state-backed stablecoin could inspire other jurisdictions to explore blockchain-based financial tools, particularly as the U.S. stablecoin market evolves [1][9].

Wyoming’s Frontier Stable Token is positioned to set a precedent for state-backed digital currency projects in the U.S. With its transparent governance and cross-chain functionality, FRNT highlights the potential of government-issued stablecoins to enhance financial services, promote innovation, and expand liquidity in the decentralized finance (DeFi) space [7][11].

Sources:

[1] Wyoming Launches the First State-Issued Stablecoin, Gizmodo (https://gizmodo.com/wyoming-launches-the-first-state-issued-stablecoin-2000645074)

[2] Stablecoin News: Wyoming State Launches Frontier Stable, CoinDesk (https://www.coindesk.com/business/2025/08/19/wyoming-state-debuts-u-s-dollar-stablecoin-on-seven-blockchains)

[3] Wyoming Launches First State-Issued Stablecoin FRNT, Cointelegraph (https://cointelegraph.com/news/wyoming-frnt-stablecoin-visa-support-7-blockchains)

[4] Wyoming launches FRNT, the first US state-issued stablecoin, CryptoSlate (https://cryptoslate.com/wyoming-unveils-frnt-state-stablecoin-joining-the-battle-in-the-285b-arena/)

[5] Wyoming launches state-backed stablecoin, a first of its kind, MSN (https://www.msn.com/en-us/money/markets/wyoming-launches-state-backed-stablecoin-a-first-of-its-kind/ar-AA1KOwsA?ocid=finance-verthp-feeds)

[6] Wyoming becomes the first US state to launch a stablecoin, Cryptopolitan (https://www.cryptopolitan.com/wyoming-launches-stablecoin-frnt-usd-backed/)

[7] Wyoming launches FRNT, the first US state-issued stablecoin, Techmeme (https://www.techmeme.com/250819/p24)

[8] Wyoming Becomes First U.S. State to Launch Government, CoinCentral (https://coincentral.com/wyoming-becomes-first-u-s-state-to-launch-government-backed-stablecoin/)

[9] First State-Backed Stablecoin Just Went Live, Coindoo (https://coindoo.com/first-state-backed-stablecoin-just-went-live-heres-what-you-need-to-know/)

[11] Wyoming Becomes First to Launch State-Issued Crypto, Watcher (https://watcher.guru/news/wyoming-becomes-first-to-launch-state-issued-crypto-stablecoin)