Wyoming Breaks Ground With First State Stablecoin

Wyoming has launched a state-issued stablecoin, saying the token will enable digital transactions that are secure, transparent and efficient.

The Frontier Stable Token (FRNT) will be fully backed by U.S. dollars and short-duration Treasurys, overcollateralized by 2%, and capable of providing instant transaction settlement, reduced fees and enhanced accessibility, the Wyoming Stable Token Commission said in a Tuesday (Aug. 19) press release.

FRNT will be launched on seven blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon and Solana, according to the release.

Wyoming Gov. Mark Gordon said in the release that the launch of FRNT came after the state passed more than 45 pieces of legislation related to blockchain, cryptocurrency and digital assets since 2016.

“Today, Wyoming reaffirms its commitment to financial innovation and consumer protection,” Gordon said in the release. “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.”

Arbitrum said in a Tuesday post on X, speaking of FRNT: “USD is now more globally accessible and we’re thrilled to see Arbitrum at the forefront of bringing nation-states and institutions onchain.”

Polygon said in a post on X: “FRNT signals a new era, for government-grade digital assets to move on open, permissionless rails like Polygon.”

Avalanche said in a thread on X that the launch of FRNT “brings programmable finance to the public sector, at scale,” and could power real-time tax refunds and emergency relief.

“While spending will go live shortly, this is the first step toward making government-issued stablecoins usable in everyday life,” Avalanche said.

The Wyoming Stable Token Commission was created by the Wyoming Stable Token Act, which was passed by the state legislature in March 2023.

Joel Revill, CEO of Two Ocean Trust and commissioner of the Wyoming Stable Token Commission, told PYMNTS CEO Karen Webster in February that the commission is not tasked with trying to determine how the coin might be used in commerce, as market forces will determine the use cases.

But no matter the use case, Revill said, the stablecoin will operate on a “more transparent, lower cost, secure payment rail vs. the … archaic payment rails that Wyoming citizens, and everyone else, are subject to.”