Wyoming has quietly taken a step that could reshape how U.S. states interact with digital dollars.
- Wyoming launched FRNT, the first state-issued stablecoin in the U.S.
- The token runs on Solana with multi-chain support and reserves managed by Franklin Templeton.
- Interest from reserves funds public schools, while adoption and volume remain key unknowns.
Wyoming has launched the first state-issued stablecoin in the U.S., bringing a government-backed dollar token onto public crypto markets.
The Frontier Stable Token went live on Jan. 7, according to an announcement published by Wyoming Public Media and the state’s Stable Token Commission.
FRNT goes live on Solana with multi-chain support
FRNT is now available for public purchase on Kraken, a Wyoming-domiciled cryptocurrency exchange, with initial trading taking place on the Solana blockchain. The token can also be transferred across multiple networks using Stargate, giving it live support on Ethereum, Arbitrum, Avalanche, Base, Optimism, Polygon, and Solana.
Stablecoins are designed to track the U.S. dollar and reduce volatility, but Wyoming’s approach is distinct. FRNT is the first stable token issued directly by a U.S. state, following nearly a decade of legislative and technical development.
The state has allocated roughly $6 million toward the project so far, with lawmakers continuing to debate additional funding as the token begins its public rollout.
Reserves backing FRNT are managed by Franklin Templeton and are held in a Wyoming-chartered trust. The reserves are reported to be fully backed and overcollateralized, consisting of U.S. dollars, cash equivalents, and short-term U.S. Treasury securities.
Interest earned on those reserves is directed to Wyoming public schools, creating a revenue stream for the state rather than for private issuers.
While FRNT does not currently pay yield to token holders, officials have said this structure reflects ongoing regulatory uncertainty around interest-bearing digital assets in the U.S. Any future changes would depend on clearer federal guidance.
A test case for state-backed digital money
State officials and backers see FRNT as both a financial and operational experiment. Beyond reserve income, Wyoming aims to reduce payment processing costs across government services.
Local officials have pointed to credit card fees as a growing burden, particularly in counties where transaction volumes are high and margins are fixed.
Converse County Treasurer Joel Schell said electronic payments through a stable token could lower costs for residents, citing tens of thousands of dollars lost annually to card processing fees. By settling payments on-chain, the state hopes to improve efficiency while keeping more value within public systems.
The token’s public launch follows several delays over the past year, though no technical or liquidity issues have been reported on its first day of trading. Early volumes remain limited, which is typical for a new stablecoin, particularly one issued by a government entity.
Analysts are watching FRNT as a possible template for other states exploring blockchain-based financial infrastructure. Wyoming’s long-standing crypto-friendly legal framework has allowed it to move first, but wider adoption will depend on usage, liquidity growth, and how regulators respond as state-issued digital money enters wider circulation.
The Wyoming Stable Token Commission is scheduled to meet next on January 15 to review early progress and outline next steps.
