The state of Wyoming has launched its own stablecoin, Frontier Stable Token (#FRNT ), on seven blockchain networks including Ethereum, Solana, Avalanche, Polygon, Arbitrum, Optimism, and Base. This is the first stablecoin issued by a U.S. state, a significant milestone for the cryptocurrency market.
Features and objectives
Developed in collaboration with LayerZero, FRNT is a "constitutionally protected public asset," not subject to arbitrary usage restrictions. Like other stablecoins, FRNT is backed by cash and U.S. Treasury bonds. However, instead of generating profits for a business, the interest from FRNT's reserves will be transferred quarterly to the Wyoming School Education Fund, serving as a public asset.
Notably, FRNT is not subject to the GENIUS Act as #Wyoming is a sovereign entity, not a business. This opens up the possibility for FRNT to share a portion of revenue with holders in the future.
Strategic significance and impact
The issuance of a stablecoin by a U.S. state is a powerful signal, indicating increasing government acceptance of digital assets. Bryan Pellengrino, CEO of LayerZero, believes this event is a "crazy sign" that the stablecoin industry has matured and gained recognition, following past regulatory concerns.
FRNT can exist on over 110 blockchains through LayerZero's Omnichain Fungible Token (OFT) technology. This not only provides liquidity but also showcases the potential of a state-backed stablecoin in a context where regulations are becoming clearer. #anhbacong
