Wyoming Frontier Stable Token Goes Live as First State-Issued Stablecoin

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The first state-issued stablecoin in the United States, Wyoming’s Frontier Stable Token (FRNT), is now publicly available. FRNT is pegged to the US dollar and has launched in a context of recent federal legislation affecting the crypto sector in the United States.

The token is available to the public on Kraken, a cryptocurrency exchange based in Wyoming. According to the Wyoming Stable Token Commission, FRNT is live on the Ethereum, Solana, Avalanche, Polygon, Arbitrum, Optimism, and Base blockchains. 

FRNT is backed by US dollars and short-term US Treasury securities held in a Wyoming-chartered trust with a 102% reserve ratio. Reserves are managed by investment management holding company Franklin Templeton. Rather than distributing interest accrued on these reserves to token holders, interest from FRNT reserves is being directed to the state’s School Foundation Fund. 

While the GENIUS Act has introduced potential restrictions on offering yields to investors, Wyoming State Senator Chris Rothfuss expressed confidence that the stable token would issue yield at some point, with the Wyoming Stable Token Commission exploring the possibility of doing so. As FRNT is a state-issued stablecoin, federal rules that apply to financial institutions may not apply to state-issued stablecoins.