Wyoming has officially launched the Frontier Stable Token (FRNT) on the mainnet for the first time in U.S. history, making it the first nationally supported stablecoin issued by a public entity.
The announcement was made on Tuesday by the Wyoming Stable Token Committee, chaired by Governor Mark Gordon.
Gordon stated in a press release, "For years, Wyoming has been a leading state in blockchain, cryptocurrency, and digital asset regulation, having passed over 2016 pieces of legislation since 45 years ago."
"Today, Wyoming reaffirms its commitment to financial innovation and consumer protection. The launch of the Frontier Stable Token mainnet will provide our citizens and businesses with a modern, efficient, and secure way to transact in the digital age."
Fully backed and over-collateralized to ensure stability
FRNT aims to provide secure, transparent, and efficient digital transactions for individuals, businesses, and institutions worldwide.
The token is fully backed by U.S. dollars and short-term U.S. Treasury securities, which are held in trust for the benefit of token holders. To enhance its stability, Wyoming law requires FRNT to maintain 2% over-collateralization, providing users with additional volatility protection.
The Network Firm will conduct monthly financial attestations and audits to ensure transparency and accountability, while the reserves will be managed by Franklin Advisers. This framework reflects Wyoming's emphasis on fiscal responsibility and trust.
Launching multi-chain in collaboration with industry partners
To maximize accessibility and resilience, FRNT has launched on seven major blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana.
The committee stated that by using multiple blockchains, it is ensuring broad adoption and user flexibility. The selection process is overseen by the Wyoming Blockchain Special Committee.
Public availability pathway
In the coming days, FRNT will be publicly purchased through the Wyoming-registered exchange Kraken, starting with the Solana blockchain.
Distribution will expand to the Visa integrated card platform of Rain on Avalanche, providing consumers with a seamless link between blockchain-based currency and traditional payment systems.
The Wyoming Stable Token Committee was established in 2023 under the Wyoming Stable Token Act, tasked with issuing fully backed, state-compliant stablecoins. Its mission is to enhance financial transparency through blockchain innovation while stimulating economic growth.
With the launch of FRNT, Wyoming sets a new precedent for states across America, indicating that the future of finance may belong not only to private issuers but also to forward-thinking public institutions.
Stablecoins threaten to disrupt U.S. bank payments
In a report released today, Morningstar warned that the rise of stablecoins poses a real risk to the core business model of U.S. banks. The most urgent concern is deposit outflows.
If consumers increasingly hold stablecoin funds for rewards, convenience, or integration with decentralized finance, banks may lose the deposits that support their lending operations.
According to data from the Bank for International Settlements, stablecoins still only account for 1.5% of total U.S. deposits, but growth is accelerating.
Morningstar analysts stated, "The large-scale shift of funds from bank accounts to stablecoins could limit banks' ability to fund new loans or extend credit."
Banks also face the risk of losing lucrative payment fees. Stablecoins bypass networks like ACH and SWIFT, enabling cheaper and faster transfers. As illustrated in Chart 2 of the report, the cost advantage is substantial, threatening revenue from transaction services.
