Wyoming is the first US State to launch its own state-issued crypto stablecoin. The stablecoin, previously known as WYST, will trade under the name Frontier Stable Token, or FRNT. Per a Bloomberg report, the Wyoming Stable Token Commission is working with LayerZero to issue the tokens and plans for the coins to be overcollateralized by 2%. In addition, the reserves backing FRNT are managed by Franklin Advisers, with financial audit and monthly attestations provided by The Network Firm. The stablecoin will be available on the Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana blockchains.
“Today, Wyoming reaffirms its commitment to financial innovation and consumer protection,” Mark Gordon, Wyoming’s governor and chairman of the state’s stable token commission, said in a statement. “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.”
The state first made the plans to launch a crypto stablecoin last year, when its governor discussed the proposal. The launch also comes after the US Government approved the GENIUS Act, a crypto bill meant to provide more transparency and guidance to the stablecoin industry. With Wyoming being the first to capitalize on this new law, other states, including Nebraska and Texas, are also considering their options in stablecoins.
Dollar stablecoins are designed to track the value of US dollars one-for-one. The assets have been the talk of the town in the United States over the last year. Since US President Donald Trump’s inauguration, more states have also pursued launching crypto projects in the form of stablecoins or crypto reserves. Now that several pieces of pro-crypto legislation have been passed, the crypto industry, especially stablecoins, is projected to continue its rise in the spotlight, and Wyoming will certainly be a catalyst in that.
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Since 2016, Wyoming has passed over 45 pieces of crypto-linked legislation. It’s also known for its special-purpose depository institution banking charter, a license designed to support products like custody services for the digital asset industry. Wyoming-based crypto exchange Kraken will be one of the first marketplaces to make FRNT available for purchase on Solana. The exchange also made headlines earlier this summer after the FBI dropped its investigation into Kraken’s founder, Jesse Powell.
