FRNT Becomes First U.S. State-Issued Fully Reserved Stablecoin

On August 19, Wyoming launched the Frontier Stable Token ( FRNT ), the first fully reserved stablecoin to be issued by a U.S. state.

The token was introduced on seven blockchains: Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base.

Its launch was accompanied by the Wyoming Blockchain Symposium in Jackson Hole, where the state officials introduced the project as a step on the way of modernizing the state finances.

Governor Mark Gordon stated, “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.”

Frontier Stable Token is collateralized 100% against U.S. dollars and short-duration Treasury bills, with a statutorily required 102% reserve ratio.

It was described by officials as a constitutionally protected public asset, which is meant to provide transparency and reliability over the privately issued stablecoins.

Token Structure and Technology

Wyoming Stable Token Commission (WSTC) collaborated with LayerZero to launch Frontier Stable Token on the Omnichain Fungible Tokens (OFT) standard that also hosts PayPal PYUSD. This means that the tokens can be used on various blockchains and can possibly support over 110 networks.

Franklin Advisers will manage the reserves, and Fireblocks offers blockchain infrastructure and The Network Firm performs audits and performs monthly attestations.

Inca Digital embraces open-source intelligence to be overseen. The Commission pointed out that its choice of partners was based on the competitive procurement process.

Public Access and Payments Integration

FRNT will open up to the masses in the following days on Kraken on Solana and Rain on the Visa-connected platform on Avalanche. Rain also affirmed that the stablecoin will be accepted everywhere Visa is supported, such as Apple Pay, Google Pay, and physical cards.

Anthony Apollo, executive director of the WSTC, said, “The issuance of FRNT signals a paradigm shift. From paying vendors in seconds to enabling tax refunds and social benefits on-chain, FRNT brings state action into the programmable era.”

In contrast to the mechanism of collecting interest on the reserves of the stablecoins of some companies, the interest earned on the reserves of FRNT will be paid into the Wyoming School Foundation Fund every quarter.

According to the officials, this mechanism guarantees the direct benefit of the tokens to the citizens of the state.

Regulatory and Political Context

This was launched after the federal GENIUS Act was passed that established regulations of stablecoin issuers.

Nevertheless, Wyoming authorities claimed that FRNT is not subject to it, as it is issued by a sovereign state and not a business.

Representative Tom Emmer condemned the initiative, stating that FRNT is similar to a central bank digital currency.

Apollo did not agree with this and argued that FRNT cannot be considered as a CBDC since it is not issued in the same way that central bank money is, and it is limited by constitutional constraints.

Wyoming, where over 45 laws relating to blockchain have been enacted since 2016, positioned the launch as a public policy effort and as a competitive entry into the US stablecoin marketplace, estimated at US$285 billion.