Wyoming is the first U.S. state to issue a stablecoin

The Wyoming Stable Token Commission announced Tuesday the launch of its own stablecoin, called the Frontier Stable Token (FRNT), according to a release from Wyoming Governor and chair of the commission Mark Gordon.

Last month, President Donald Trump signed the GENIUS Act into law, which provides a framework for digital tokens backed by conventional assets such as Treasury bills or bank deposits.

“For years, Wyoming has been the leading state on blockchain, cryptocurrency, and digital asset regulation, passing over 45 pieces of legislation since 2016,” Gordon said in the release. “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 token will be fully backed by the U.S. dollar and short-duration treasuries “held in trust for the benefit of token holders” across the globe, the release said. It added that the token is fortified by a “legislatively-mandated remit” to get 2% overcollateralization. 

While the name implies stability, stablecoins can and do become unstable when they’re unpegged from their target asset or currency. In February, Consumer Reports and other groups called the now-passed stablecoin legislation "a crypto industry wish list."

The Wyoming commission partnered with LayerZero to issue the token and Fireblocks for its blockchain infrastructure, among others.

The token will be available to buy on Solana through Kraken, Wyoming’s domiciled digital asset exchange, in the next few days. Buyers can also use Rain’s Visa $V-integrated card platform on Avalanche.

The commission has said it “does not anticipate” selling the token directly to the public. Instead, FRNT can only be bought through authorized resellers that have gone through the commission’s “Know Your Business” review. It added that every quarter it reviews new candidates. 

Wyoming’s state legislature passed its Stable Token Act in 2023, which created the commission and cleared the way for it to issue tokens. 

“I respect the vote of the Wyoming people, however, I personally am vehemently against any government issuing a tokenized version of its currency,” Republican House Majority Whip Tom Emmer of Minnesota told Decrypt in March. “At the federal level, this would be considered a central bank digital currency.”

— Jackie Snow and Harriet Weber contributed to this article.