Shortly after President Donald Trump signed the GENIUS Act into law, providing a new regulatory framework for dollar-pegged cryptocurrencies, Wyoming officially introduced the Frontier Stable Token (FRNT), becoming the first US state to issue its own blockchain-based stablecoin.
The Wyoming Stable Token Commission announced the initiative on Tuesday, aiming to provide users of the new stablecoin with secure, transparent, and efficient digital transactions.
Wyoming’s Stablecoin Issued On Seven Blockchains
Governor Mark Gordon, who chairs the Wyoming Stable Token Commission, emphasized Wyoming’s commitment to financial innovation and the integration of crypto into everyday transactions, stating:
For years, Wyoming has been the leading state on blockchain, cryptocurrency, and digital asset regulation, passing over 45 pieces of legislation since 2016…The mainnet launch of the Frontier Stable Token will empower our citizens and businesses with a modern, efficient, and secure means of transacting in the digital age.
The Frontier Stable Token is designed to be fully backed by US dollars and short-duration treasuries, held in trust for the benefit of token holders. To enhance its stability, FRNT has a legislatively mandated overcollateralization of 2%.
FRNT was developed in partnership with industry experts. It will leverage blockchain technology to facilitate instant transaction settlements, reduce fees, and enhance accessibility for a diverse range of users.
In a strategic collaboration with token issuance partner LayerZero, the Commission has ensured that FRNT will be available across multiple blockchain networks.
This decision follows encouragement from the Wyoming Select Committee on blockchain, which supports the stablecoin’s issuance on seven distinct blockchains, including Arbitrum (ARB), Avalanche (AVAX), Base, Ethereum (ETH), Optimism (OP), Polygon (POL), and Solana (SOL).
LayerZero, Fireblocks, And Others Collaborate
The launch of the FRNT stablecoin was made through what the commission calls a “thorough and transparent procurement process,” engaging various partners to ensure transparency and efficiency of the new cryptocurrency.
These partners include LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence, and The Network Firm for financial audits and monthly attestations.
In the coming days, FRNT will be available for purchase on the Solana blockchain via US-based cryptocurrency exchange Kraken, based in Wyoming. Additionally, users will be able to access FRNT through Rain’s Visa-integrated card platform on the Avalanche blockchain.
Beyond Wyoming’s Stable Token Commission’s recommendations for the safe usage of the newly issued token, the Treasury department called on Monday on public input to combat illicit activities involving these assets under the GENIUS Act.
As reported by Bitcoinist, the department is especially focused on collecting public input regarding various crypto technologies that may improve the capacity to recognize and reduce risks linked to stablecoins.
Featured image from DALL-E, chart from TradingView.com
