Wyoming Launches State-Backed Stablecoin FRNT on Solana Network

• Wyoming becomes the first U.S. state to launch a government-backed dollar token, FRNT.
• The state plans to use FRNT to lower payment processing costs in government services.

Wyoming has taken a forward step toward crypto adoption by introducing a U.S. state-backed dollar token, bringing a regulated digital dollar into public crypto markets. The Wyoming state governor has officially announced the launch of Frontier Stable Token (FRNT) in his X post on Wednesday, January 7th.

The Wyoming government-backed U.S. dollar token FRNT (The Frontier Stable Token) is now accessible to everyone on Kraken, a Wyoming-domiciled cryptocurrency exchange, with initial trading available on Solana Blockchain and transferred to other blockchains using the Stargate platform. As it is also supported on the Arbitrum, Avalanche, Base, Ethereum, Optimism, and Polygon blockchains.​

Stablecoins are usually backed by the U.S. dollar that are intended to be less volatile than other kinds of digital currencies. While Wyoming has made its mark as the first and only US state to issue a state-backed token. The Frontier Stable Token project, which has been in the works for more than a decade, has received $6 million from the state for development, as per the Wyoming Public Media.

FRNT Targets Lower Processing Costs

As per the press release from the Wyoming Governor’s office, FRNT is designed by the seven-member Wyoming Stable Token Commission,  with Governor Mark Gordon as Chairman, to oversee the token’s construction. FRNT is intended for private and institutional usage. It is totally backed by US dollars and short-term US Treasuries, which pay interest to the state, enabling a revenue stream for the state.​

Beyond reserve income, Wyoming government intends to cut payment processing expenses across all government services. Converse County Treasurer Joel Schell stated that stable tokens could help restore more money to residents by lowering transaction processing costs.

He stated that the county takes credit card payments but cannot increase the registration or taxes on properties to cover processing fees, so the costs are passed on to residents. With that,  Schell continued, “Electronic payments, especially the stable token, would let us get more efficient.”

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