Wyoming, USA launches government stablecoin FRNT: fully backed, multi on-chain deployment, with proceeds used for education fund.

Wyoming officially launched the Frontier Stable Token, the first blockchain stablecoin issued by a state government in the United States, (FRNT). This stablecoin is fully backed by US dollars and short-term government bonds, with an over-collateralization of 2%. This article details the issuance mechanism of FRNT, its differences from traditional commercial stablecoins, its unique compliance stablecoin model, and how it operates on seven mainstream blockchains through LayerZero cross-chain technology, analyzing its profound impact on the state-level stablecoin sector and the development of RWA (real-world assets).

Wyoming Takes the Lead, Launches the First State-Level Stablecoin in the U.S.

Wyoming has become the first state in the United States to launch a blockchain-based stablecoin. The state has issued the Frontier Stable Token (FRNT) on multiple blockchain networks, with its reserves backed by US dollars and short-term government bonds. The Wyoming Stablecoin Committee announced the launch of the FRNT mainnet at a state press conference on Tuesday. This stablecoin release event marks the first issuance of a blockchain-based stable token by a public entity in the United States. The token will be available on the Solana Blockchain through the Wyoming-based exchange Kraken in the coming days. Additionally, it will be distributed via the blockchain-supported payment card platform Rain and the Visa service integrated on Avalanche. The chairman of the committee, Governor Mark Gordon, stated that this release is the culmination of Wyoming's years of efforts to promote digital asset regulation. "Today, Wyoming reaffirms its commitment to financial innovation and consumer protection. The mainnet launch of the Frontier Stable Token will provide our state's citizens and businesses with a modern, efficient, and secure way to transact in the digital age," Gordon told the media.

FRNT Structure and Collateral Mechanism: Over-Collateralization and Yield Publicization

According to a statement from the Wyoming Commission, the Frontier Stable Token will be fully backed by US dollars and short-term Treasury bills, held in trust for the token holders. Additionally, state law mandates that FRNT maintain an over-collateralization of 2%. Unlike commercial stablecoins, the interest generated from reserves will not flow to private companies. Instead, the funds will be transferred quarterly to the School Foundation Fund in Wyoming to benefit residents across the state. Democratic Senator and blockchain legislation supporter from Wyoming, Chris Rothfuss, stated in July that the token might eventually share part of its reserve earnings directly with holders. However, this feature was not activated at launch, and internal committee sources indicate that it is still under development.

Legal and Regulatory Distinctions: Unique Advantages of State Sovereign Entities Issuance

FRNT is not regulated by the stablecoin framework of the GENIUS Act passed by the federal government last month. Supporters say this is because Wyoming is a sovereign public entity rather than a private enterprise. This distinction may give the state flexibility in managing tokens, free from the restrictions faced by corporate issuers. "FRNT proves that the government can not only regulate but also innovate," said Anthony Apollo, Executive Director of the Wyoming Stablecoin Committee. He added that the state is ready to challenge any requests for seizure or freezing of funds that conflict with the Wyoming state constitution. According to Fox News reporter Eleanor Terrett, Apollo will speak today on the Crypto In America podcast to share more details about the stablecoin developments.

Technical Implementation: Full Chain Deployment and Strong Partner Ecosystem

The committee has partnered with LayerZero to simultaneously launch FRNT on seven blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana. This decision underwent a "rigorous screening process" to ensure transparency and accessibility across the networks. LayerZero assisted with token issuance, Fireblocks provided blockchain infrastructure, Franklin Advisers managed reserves, Inca Digital contributed open-source intelligence, and The Network Firm was responsible for financial auditing and monthly attestation. FRNT uses the LayerZero Omni-Chain Fungible Token (OFT) standard, which also supports PayPal's PYUSD stablecoin. Tokens based on this standard can operate on over 110 blockchains supported by LayerZero.

Industry Background and Political Response: Born Amidst Doubts and Comparisons to CBDC

The launch of FRNT comes just three years after the $40 billion ecosystem collapse of Terra in 2022, an event that sparked widespread skepticism and regulatory scrutiny regarding stablecoins. Despite the enthusiasm, some American conservatives led by House Majority Whip Tom Emmer liken FRNT to merely a central bank digital currency (CBDC). Republicans believe that this state-supported digital asset could infringe on financial privacy and sovereignty.

Conclusion

The issuance of the FRNT stablecoin by the state of Wyoming is a milestone government blockchain application practice, providing a new model for global sovereign entities to issue digital currency. Its model of "over-collateralization + public benefit of returns" sets a high standard in the compliance and public responsibility of stablecoins, contrasting sharply with those issued by private institutions. Despite facing some political skepticism, its successful multi-chain deployment and clear legal positioning mark a new stage where RWA and DeFi are deeply engaged with government and traditional financial infrastructure. This is not only a victory for Wyoming but also a key step in the entire blockchain adoption process, heralding the accelerated arrival of a more compliance-oriented and transparent digital asset era led by the public sector.