Wyoming Becomes the First State to Launch Stablecoin FRNT

Key Highlights

• Wyoming became the first U.S. state to launch its own government-backed stablecoin, the Frontier Stable Token (FRNT), on January 8
• The launch is a direct result of the state’s crypto-friendly laws under the leadership of Senator Cynthia Lummis
• Coinbase CEO Brian Armstrong warned that restrictive U.S. policies, particularly bans on stablecoin rewards, could pause competition against digital currencies like China’s e-CNY

On December 7, the Wyoming Stable Token Commission officially declared the launch of Frontier Stable Token for public purchase via Wyoming-domiciled cryptocurrency exchange, Kraken. 

How Wyoming’s New Stablecoin Works?

Wyoming announced the project in partnership with a global asset management firm, Franklin Templeton. The new digital currency is a USD-pegged stablecoin, meaning each FRNT token is backed 1:1 by USD held in a reserve. It is being issued on the Solana blockchain, which was chosen for its fast transaction speeds and low operational costs.

The stated purpose of FRNT is to enable quicker payments, reduce fees for users, and expand financial inclusion for Wyoming residents and others.

The development and launch were managed by the Wyoming Stable Token Commission, a body created by state law in 2022. Anthony Apollo, the Commission’s Executive Director, explained the purpose behind the project. He stated that FRNT is a tool for economic growth, designed to work smoothly with modern decentralized finance applications while adhering to regulatory rules. 

The initial supply is 10 million tokens. Primary uses will include paying state employees and settling bills with vendors. The token is non-custodial, so users hold it directly in their own comparable digital wallets, and it includes built-in compliance with federal anti-money laundering standards. 

The Driving Force of Senator Cynthia Lummis

Central to Wyoming’s place as a leader in digital assets is Senator Cynthia Lummis, a Republican from Wyoming. Often called the “Crypto Queen,” Senator Lummis has been a longtime advocate for clear and supportive cryptocurrency laws. As a former state treasurer, she has worked to pass legislation that makes Wyoming a welcoming place for blockchain businesses. 

In 2024, she co-authored the Lummis-Gillibrand Payment Stablecoin Act, which proposed a federal framework for stablecoins while allowing states room to innovate. 

In 2025, Senator Lummis became the chair of the Senate Banking Subcommittee on Digital Assets, the first of its kind. From this role, she played a role in many major bills. These included the BITCOIN Act, which explored the idea of holding Bitcoin in U.S. strategic reserves, and the GENIUS Act, which supported blockchain technology research. 

Senator Lummis has consistently argued that the United States must lead in digital asset innovation, using states like Wyoming as testing grounds. She announced her retirement in late 2025. 

Coinbase CEO Calls for U.S. Rewards on Stablecoins  and Competitive Policy

Amid this state-level innovation, a popular leader in the industry has raised concerns about national policy. Brian Armstrong, the CEO of the cryptocurrency exchange Coinbase, has publicly urged U.S. lawmakers to allow stablecoins to offer rewards or yield to holders. 

He warns that overly restrictive rules could put the United States at a disadvantage, specifically against China’s progress with its digital currency, the e-CNY (Digital Yuan).

Armstrong argues that the ability to earn interest on stablecoins is a major incentive for people to use them, which helps keep the USD strong in the global digital economy. He mentioned that China’s digital yuan already provides features like subsidies and interest in its pilot programs. This approach makes it a tool for international trade. 

Armstrong warned that if the U.S. bans such rewards, it risks falling behind in the race for digital currency influence. 

Faryar Shirzad, Chief Policy Officer at Coinbase, said, “And of course, as the Senate deliberates, China understands the opportunity the bank lobby is poised to give them and announces that they will pay interest to users of the Digital Yuan. Undermining the supremacy of the USD has been a longstanding goal of the PRC – the Senate banning rewards would be a big assist to China’s efforts.”

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