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

Wyoming has officially become the first U.S. state to issue a state-backed stablecoin, the Frontier Stable Token (FRNT), which was launched in August 2025. The token is fully backed by U.S. dollars and short-term U.S. Treasury bills, with a statutory reserve requirement of 102%, ensuring overcollateralization. The Wyoming Stable Token Commission, a state-authorized body, announced the launch, marking it as a historic step in the integration of blockchain technology into public financial systems [1].

FRNT has already been deployed on seven major blockchain networks, including Arbitrum, Polygon, Optimism, Base, Avalanche, Ethereum, and Solana. The selection of these networks followed a rigorous evaluation process, prioritizing accessibility and transparency. The token will initially be available for purchase via Wyoming-based digital asset exchange Kraken on the Solana blockchain, as well as through Rain’s Visa-integrated card platform on Avalanche. LayerZero will facilitate cross-chain distribution, while Fireblocks will provide the underlying blockchain infrastructure [2].

Reserves for FRNT are managed by Franklin Advisers, with Inca Digital contributing open-source intelligence and The Network Firm conducting financial audits and monthly attestations. Once publicly available, the token will be redeemable for U.S. dollars and usable on any Visa-accepted platform, including digital wallet services like Apple Pay and Google Pay. Users will also have the option to receive physical bank cards for FRNT transactions [3].

Wyoming’s stablecoin initiative began in 2023 with the establishment of the Stable Token Commission. This effort gained momentum following the enactment of the GENIUS Act, the first major federal legislation to regulate stablecoins. The act defines “payment stablecoins” and outlines rules for their issuance, limiting it to U.S.-based subsidiaries of insured banks, credit unions, or nonbank firms approved by the Office of the Comptroller of the Currency. Under the law, stablecoins must be fully backed by reserves, and issuers cannot offer yields or interest to holders [4].

The FRNT launch represents a broader trend of state-led experimentation with digital currencies. While most U.S. digital dollar projects have been corporate or centralized, Wyoming’s initiative introduces a new model of state-backed digital money. The state’s approach combines innovation with regulatory clarity, aiming to reduce transaction costs and increase the speed of payments. The move also positions Wyoming as a regulatory testbed, potentially influencing future federal and state-level digital currency policies [5].

By anchoring FRNT to U.S. dollars and Treasury instruments, Wyoming has created a model that bridges decentralized finance with traditional monetary systems. The stablecoin is not a symbolic gesture but a functional financial tool, designed to enhance economic efficiency and attract technology-driven investment. The project underscores the state’s ambition to lead in the digital economy and to serve as a model for other jurisdictions exploring digital currency integration [6].

The stablecoin’s launch also highlights the growing importance of regulatory frameworks in the digital asset space. With the GENIUS Act providing much-needed clarity, the stablecoin market has seen significant growth. According to DeFi data platforms, the sector’s total capitalization has reached record highs, driven by increased institutional interest and consumer adoption. Tether’s USDT remains the dominant stablecoin, with a market cap exceeding $167 billion, though competitors like Circle’s USDC are gaining traction [7].

Wyoming’s FRNT is expected to expand the state’s digital payment infrastructure and serve as a foundation for future financial innovation. The initiative demonstrates how local governments can leverage emerging technologies to enhance economic performance and deliver modern financial services to residents. As the first U.S. state to issue a publicly accessible stablecoin, Wyoming’s efforts are being closely monitored by regulators, technologists, and financial institutions across the country [8].

Source:

[1] Avax.network, FRNT Goes Live: The First U.S. State-Issued Stablecoin You Can Actually Use (https://www.avax.network/about/blog/frnt-goes-live-the-first-u-s-state-issued-stablecoin-you-can-actually-use)

[2] Ledger Insights, Wyoming Introduces State Backed Stablecoin on 7 Blockchains (https://www.ledgerinsights.com/wyoming-introduces-state-backed-stablecoin-on-7-blockchains/)

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

[4] Bloomberg, Wyoming Becomes the First to Launch a State-Issued Stablecoin (https://www.bloomberg.com/news/articles/2025-08-19/wyoming-becomes-the-first-to-launch-a-state-issued-stablecoin)

[5] PYMNTS.com, Wyoming Breaks Ground With First State Stablecoin (https://www.pymnts.com/cryptocurrency/2025/wyoming-launches-state-issued-dollar-backed-stablecoin/)

[6] Bitcoin.com News, Wyoming Becomes First State to Issue Stablecoin Across 7 Blockchains in Historic Move (https://news.bitcoin.com/wyoming-becomes-first-state-to-issue-stablecoin-across-7-blockchains-in-historic-move/)

[7] Cowboy State Daily, Wyoming Is First State To Launch Its Own Digital Currency (https://cowboystatedaily.com/2025/08/19/wyoming-is-first-state-to-launch-its-own-digital-currency-frontier-stable-token/)