On August 19, 2023, Wyoming launched the Frontier Stable Token (FRNT), which became the first fully reserved stablecoin issued by a U.S. state. This token aims to modernize the state's financial sector and offers unique opportunities for its citizens and businesses.
Token Structure and Technology
The Frontier Stable Token has been issued on seven blockchains, including Ethereum, Solana, and Avalanche. The token is 100% collateralized by U.S. dollars and short-duration Treasury bills, with a mandatory reserve ratio of 102%. This lays the foundation for transparency and reliability that surpasses privately issued stablecoins.
Public Access and Payments Integration
FRNT will be available on Kraken and Rain, where it can be used via Visa, including Apple Pay and Google Pay. WSTC Executive Director Anthony Apollo noted that this token signifies a paradigm shift in payments, speeding up transactions and facilitating automated tax refunds.
Regulatory and Political Context
The token's launch followed the passage of the federal GENIUS Act, which regulates stablecoin issuers. However, Wyoming authorities stated that FRNT is not subject to this regulation as it is issued as a sovereign asset. Some political figures, like Representative Tom Emmer, criticized the initiative, calling the token similar to a central bank digital currency; however, Apollo refuted this claim.
The launch of the Frontier Stable Token marks a significant step for Wyoming in the context of a digital economy and signifies changes in the approach to the state's financial system. This highlights the growing role of stablecoins in the American financial market.
