Wyoming has become the first U.S. state to launch its own stablecoin, part of a broader push to make the state a hub for digital finance, according to CNBC. The Frontier Stable Token (FRNT) officially went live on August 19.
Each token is backed one-to-one with U.S. dollars and short-term Treasuries, plus a two percent cushion of extra collateral. That design, state officials say, ensures stability and trust. Interest from the reserves will help fund Wyoming’s public schools, giving the coin a direct link to state services, per Bloomberg.
Governor Mark Gordon called the launch the result of nearly a decade of work. Lawmakers have passed more than 45 bills on crypto, blockchain, and digital assets since 2016.
“Today, Wyoming reaffirms its commitment to financial innovation and consumer protection,” Gordon said. “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 Wyoming Stable Token Commission, created under the Stable Token Act, oversees the project. It has partnered with private firms to run the system: LayerZero provides cross-chain messaging, Fireblocks handles custody, and Franklin Advisers manages the reserves. Independent audits will verify the backing.
The commission stresses transparency. It holds public meetings, publishes monthly reports, and keeps token reserves separate from other state funds. Executive director Anthony Apollo described the effort as “a start-up within the context of US state government.”
FRNT already works across seven blockchains, including Ethereum, Solana, Avalanche, Arbitrum, Base, Optimism, and Polygon. In pilot tests, the system cut contractor payment times from 45 days to seconds. Exchanges like Kraken and card providers such as Rain are exploring ways to let users spend FRNT directly.
Joel Revill, CEO of Two Ocean Trust and a member of the commission, said the market will decide the token’s role.
“The Wyoming Stable Token Commission will not attempt to ascertain how the stablecoin will be used in the marketplace since market forces will determine that,” Revill explained.
Wyoming’s move comes as Congress debates federal rules for stablecoins. Proposals like the GENIUS Act would set national standards, but state-issued tokens like FRNT fall into a legal gray zone.
For now, Wyoming stands alone. FRNT is the first state-backed digital coin in the U.S.—fully collateralized, cross-chain, and tied to public funding. Whether other states follow, the launch has already made Wyoming a test case for how government can step into digital money.
