Wyoming state announced on Tuesday the mainnet launch of its U.S. dollar stablecoin Frontier Stable Token (FRNT), claiming it to be the first fully-reserved stablecoin in the country issued by a public entity.
“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,” Mark Gordon, governor of Wyoming and chairman of the Wyoming Stable Token Commission, said in a statement.
The token has already been deployed on the Arbitrum (ARB), Avalanche (AVAX), Base, Ethereum (ETH), Optimism (OP), Polygon (POL), and Solana (SOL) networks, blockchain data on the project’s website shows. The token is designed to be 2% over-collateralized, backed by U.S. dollars and short-duration U.S. treasuries held in trust.
The token will be available for the broader public in the coming days on Solana through Wyoming-domiciled exchange Kraken and Rain’s Visa-integrated card platform on the Avalanche blockchain, the press release said.
The announcement, coincided with the Wyoming Blockchain Symposium conference in Jackson Hole, Wyoming, follows the U.S. enacting federal laws with the GENIUS Act to regulate the fast-growing stablecoin sector and issuers.
Stablecoins are a $260 billion class of cryptocurrencies with prices tied to an external asset like the U.S. dollar. They could become a trillion dollar market in the next few years and disrupt payments flows as adoption in the real economy expands, crypto trading firm Keyrock projected in a recent report.
Wyoming, known for its forward stance on blockchain legislation, created the Wyoming Stable Token Commission in 2023 to develop and issue a U.S. dollar-backed token and oversee its integration into public finances. Last month, the state conducted a test transaction for real-time government contractor payment on the Avalanche-based Hashfire.
The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations, all selected through a procurement process, the press release said.
Read more: U.S. Treasury Department Starts Work on GENIUS, Gathering Views on Illicit Activity