Wyoming has become the first state in the US to launch a stablecoin based on blockchain technology. The Frontier Stable Token (FRNT) is issued on several blockchains and backed by US dollars and short-term treasury securities.
Launch of Frontier Stable Token
The Wyoming Stable Token Commission announced the launch of the FRNT mainnet at a press briefing. This event marks the first time a public entity in the US has issued a stable token on the blockchain.
"Today, Commission Chairman and Governor Mark Gordon announced the mainnet launch of the Frontier Stable Token (FRNT). This historic move marks Wyoming as the first public entity in the United States to issue a blockchain-based stable token," stated the Commission.
Structure and Collateralization of FRNT
According to the Wyoming Commission's statement, the token will be fully backed by US dollars and short-duration treasuries held in trust for token holders. State law mandates that FRNT maintain a 2% overcollateralization.
Unlike commercial stablecoins, the interest generated from reserves will not flow to private companies. Instead, funds will be diverted to Wyoming's School Foundation Fund every quarter to benefit state residents.
Legal and Regulatory Aspects
FRNT is not regulated under the federal GENIUS Act, the stablecoin framework passed by Congress last month. Supporters argue that this is because Wyoming is a sovereign public entity rather than a private business. This distinction may provide the state with flexibility in managing the token without the restrictions faced by corporate issuers.
"FRNT proves that governments can do more than regulate, they can innovate," said Anthony Apollo, Executive Director of the Wyoming Stable Token Commission.
The launch of the Frontier Stable Token in Wyoming showcases the state’s commitment to financial innovation and modernization of transaction processes. This token could reshape the management of digital assets at the state level.
