Wyoming Shatters Tradition: Launches First-Ever State-Issued Stablecoin
Wyoming just rewrote the rulebook—launching America's first state-backed stablecoin while Wall Street still debates definitions.
The Cowboy State's Digital Currency
Forget waiting for federal approval. Wyoming's new stablecoin pegs directly to the US dollar, backed 1:1 by state treasury reserves—cutting through regulatory gridlock like a hot knife through butter.
Why States Are Paying Attention
This isn't just symbolic. By issuing its own digital currency, Wyoming bypasses traditional banking intermediaries—slashing transaction costs and settlement times from days to seconds. Other states now face pressure to innovate or get left behind.
Finance's Ironic Twist
While crypto purists debate decentralization, Wyoming just gave stablecoins something they've desperately needed: sovereign backing. Because nothing says 'trustless' like a government guarantee—except maybe a banker's pinky swear.
Fully Backed and Overcollateralized for Stability
FRNT is designed to provide secure, transparent, and efficient digital transactions for individuals, businesses, and institutions globally.
The token is fully backed by U.S. dollars and short-duration U.S. Treasuries, which are held in trust for the benefit of token holders. To reinforce its stability, Wyoming law mandates that FRNT maintain 2% overcollateralization, giving users an additional safeguard against volatility.
Monthly financial attestations and audits will be conducted by The Network Firm to ensure transparency and accountability, while reserves will be managed by Franklin Advisers. This framework reflects Wyoming’s emphasis on fiscal responsibility and trust.
Multi-Chain Launch With Industry Partners
In a bid to maximize accessibility and resilience, FRNT has launched on seven major blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana.
By using multiple blockchains, the Commission said it is making sure there is broad adoption and user flexibility. The selection process was overseen by Wyoming’s Select Committee on Blockchain.
Path to Public Availability
In the coming days, FRNT will become publicly available for purchase through Kraken, a Wyoming-domiciled exchange, starting with the solana blockchain.
Distribution will also extend to Rain’s Visa-integrated card platform on Avalanche, offering consumers a seamless LINK between blockchain-based money and traditional payment systems.
The Wyoming Stable Token Commission formed in 2023 under the Wyoming Stable Token Act, has been tasked with issuing fully backed, state-compliant stable tokens. Its mission is to strengthen financial transparency while spurring economic growth through blockchain innovation.
With FRNT now live, Wyoming has set a new precedent for U.S. states, signaling that the future of finance may not just belong to private issuers but also to forward-thinking public institutions.
Stablecoins Threaten to Disrupt U.S. Bank Payments
In a report released today, Morningstar warns that the rise of stablecoins poses real risks to U.S. banks’ Core business models. The most immediate concern is deposit flight.
If consumers increasingly hold funds in stablecoins for rewards, convenience, or integration with decentralized finance, banks could lose the deposits that underpin their lending operations.
According to the Bank for International Settlements, stablecoins still account for just 1.5% of total U.S. deposits, but growth is accelerating. “
A large-scale shift of funds from bank accounts into stablecoins could constrain banks’ ability to fund new loans or extend credit,” Morningstar analysts said.
Banks also risk losing lucrative payment fees. Stablecoins bypass networks like ACH and SWIFT, enabling cheaper and faster transfers. As Exhibit 2 shows, the cost advantage is significant, threatening revenue from transaction services.
