Wyoming Launches America’s First State-Issued Stablecoin

Wyoming made history on January 7, 2026, by becoming the first U.S. state to launch its own stablecoin. The Frontier Stable Token (FRNT) marks a significant milestone in government-backed digital currency, offering residents and institutions a state-managed alternative to privately issued stablecoins like USDC and USDT.

Governor Mark Gordon announced that FRNT is “the first fiat-backed, fully-reserved stable token to be issued by a public entity in the United States.” The launch represents nearly a decade of legislative preparation, with Wyoming passing over 45 blockchain-related laws since 2016.

Building America’s First Public Stablecoin

The Wyoming Stable Token Commission, established in March 2023 under the Wyoming Stable Token Act, has led the development of FRNT. Governor Gordon serves as chairman of the seven-member commission, while Executive Director Anthony Apollo oversees day-to-day operations.

Apollo, who previously worked at KPMG, EY, and ConsenSys, brings extensive experience in both traditional finance and digital assets. The commission operated with a $5.8 million budget, deploying less than 50% of allocated funds during initial development phases.

FRNT is fully backed by U.S. dollars and short-term Treasury securities held in trust by the state. Wyoming law requires 102% over-collateralization, providing an additional safety buffer beyond the full backing requirement. This structure distinguishes FRNT from algorithmic stablecoins, which rely on complex mechanisms rather than traditional reserves.

Source: @GovernorGordon

Franklin Templeton, a global investment firm managing over $1.6 trillion in assets, handles reserve management. Its affiliate, Fiduciary Trust Company International, serves as custodian. Interest earned from these reserves flows directly to Wyoming’s School Foundation Program, creating a new revenue stream for public education without raising taxes.

Multi-Chain Infrastructure and Technology

FRNT operates natively on the Solana blockchain but supports seven different networks at launch: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana. The Wyoming State Commission also approved Hedera as a candidate blockchain for future expansion after rigorous technical review.

The token uses LayerZero’s Omnichain Fungible Token standard, the same technology powering PayPal’s PYUSD stablecoin. This standard enables seamless cross-chain transfers through Stargate Finance, allowing users to move FRNT between supported blockchains without complex bridge protocols. Fireblocks provides security infrastructure and transaction management.

LayerZero’s architecture gives Wyoming unique control capabilities. Unlike traditional stablecoins where private companies control verification functions, Wyoming operates its own decentralized verifier network. The state oversees all minting, redemptions, freezes, and compliance functions, applying its own policy framework to each transaction.

Practical Cost Savings for Citizens

Wyoming officials emphasize FRNT’s potential to dramatically reduce payment processing costs. Converse County Treasurer Joel Schell provided concrete numbers illustrating the problem with traditional payment systems.

“The county is like any other business — we take credit cards, but we can’t raise registration fees and property taxes to absorb the processing costs, so we send those costs directly to the customers,” Schell explained. His office processed $3.4 million in credit card transactions last year, resulting in $70,000 in fees paid by county residents.

FRNT transactions cost approximately one cent each and settle nearly instantly, operating 24/7. This represents potential savings of thousands of dollars annually for counties and residents who currently pay 2-3% credit card processing fees.

The commission conducted pilot programs demonstrating FRNT’s utility for vendor payments and government operations while maintaining necessary compliance checks and approvals.

Regulatory Framework and Federal Exemptions

FRNT’s launch coincides with significant federal stablecoin legislation. President Donald Trump signed the GENIUS Act into law on July 18, 2025, establishing the first comprehensive federal framework for payment stablecoins. The act requires private issuers to maintain full reserves in cash or U.S. Treasuries under Treasury Department oversight.

However, state-issued stablecoins receive exemption from federal GENIUS Act regulations. The legislation’s definition of “person” explicitly excludes state governments, granting Wyoming sovereign immunity from federal stablecoin oversight. This distinction gives Wyoming flexibility in managing FRNT without restrictions facing corporate issuers.

Critics, including House Majority Whip Tom Emmer and some conservative Republicans, have compared FRNT to a central bank digital currency, expressing concerns about financial privacy and sovereignty. Supporters counter that state-level innovation provides transparency and accountability absent from privately issued alternatives.

Executive Director Apollo emphasized Wyoming’s commitment to challenging any federal requests that conflict with state constitutional mandates, highlighting the “tall fence” between state and federal authority.

Where to Access FRNT

FRNT is currently available for purchase through Kraken, a Wyoming-domiciled cryptocurrency exchange operating as a Special Purpose Depository Institution. Users can buy FRNT on the Solana blockchain and transfer tokens to other supported networks using Stargate.

Rain, a Visa-powered payment card platform, offers FRNT access on the Avalanche blockchain. The commission plans to onboard additional Licensed Service Providers throughout 2026 to expand distribution channels.

The global stablecoin market has grown from $208 billion in January 2025 to over $309 billion as of January 2026. Industry projections suggest the market could reach $400 billion by the end of 2026, with some forecasts indicating potential growth to $2.8 trillion by 2028.

North Dakota has announced plans to launch its own state-issued stablecoin called the Roughrider coin, with pilot testing expected later in 2026. Nebraska has also obtained legislative approval for a state-issued digital token, suggesting Wyoming’s model may influence other states.

Looking Ahead: Wyoming’s Digital Finance Frontier

Wyoming’s FRNT stablecoin represents a bold experiment in state-level financial innovation. The combination of full reserve backing, transparent governance, and multi-chain functionality creates a template other states may follow. Success depends on adoption rates, operational efficiency gains, and the token’s ability to deliver promised cost savings to residents and businesses.

The commission will scale FRNT throughout 2026, deploying the token across additional state agencies and partnering with public entities interested in similar initiatives. While current regulations prevent FRNT from offering yield to token holders, officials continue exploring this possibility within compliance frameworks. Early trading volumes remain limited, typical for new government-issued digital assets, but Wyoming’s decade-long preparation positions FRNT for gradual integration into state operations and beyond.