‘A milestone in financial innovation’: Wyoming issues first state-backed stablecoin on Solana

The Solana-based Wyoming Frontier Stable Token (FRNT) is now publicly available for purchase as of Wednesday, marking the first official launch of a dollar-pegged, state-issued, blockchain-based asset.

“Designed under the leadership of the Wyoming Stable Token Commission, the Frontier Stable Token ($FRNT) represents a milestone in financial innovation — bringing together the security and oversight of state-managed reserves with the efficiency and transparency of blockchain technology,” Wyoming representatives wrote in a statement. 

FRNT represents the latest blockchain experiment inspired by the success of private stablecoins by a major institution. J.P. Morgan Chase, the largest U.S. bank by assets, for instance, has issued a dollar-pegged “deposit token” that is backed by its deposits on Base and Canton.

Unlike privately issued stablecoins like Tether’s USDT and Circle’s USDC, Wyoming’s stablecoin “offers public accountability, transparent oversight, and direct alignment with the rule of law.” Its overcollateralized holdings will be kept in a Wyoming trust and invested exclusively in U.S. dollars and short-duration U.S. Treasuries.

Wyoming has long been a pioneer in the digital asset space, including passing laws to recognize DAOs as legal entities, creating a framework for crypto banks under the Special Purpose Depository Institutions charter, and the state’s Stable Token Act — all meant to draw economic activity to the region.

FRNT design

The state tapped Franklin Templeton to manage FRNT’s reserves and the Franklin Templeton affiliate Fiduciary Trust Company International as custodian. Interest from its reserves will help fund Wyoming’s school program, “positioning it as a public good and opportunity for revenue diversification,” the state said on X.

“Our collaboration with the State of Wyoming demonstrates what’s possible when the public and private sectors work together to create a compliant, trusted framework for digital assets,” Franklin Templeton CEO Jenny Johnson said.

Wyoming noted FRNT will offer “settlement in seconds, incurring fees of < $0.01, available anywhere w/ an internet connection, instant auditability, and reduced counterparty risk — intended for retail use and institutions.” The token is available for purchase through the Wyoming-domiciled cryptocurrency exchange Kraken.

The Wyoming Stable Token Commission began studying the creation of a stablecoin as early as 2023, after the state passed the landmark Stable Token Act, which tasked the organization with researching and developing a framework for a state-backed blockchain token.

In August, the commission said a consultation period testing 11 blockchains had concluded, with Solana tapped as FRNT’s native blockchain. LayerZero also provides cross-chain bridging to EVM chains, including the Ethereum base layer and Arbitrum, Base, Optimism, and Polygon, L2s, as well as the Layer 1 Avalanche.

Wyoming initially planned to launch FRNT on Monday, though an unforeseen issue delayed the event.

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