Wyoming Rolls Out First State-Issued Stablecoin in the US

Wyoming has officially crossed a historic milestone in U.S. crypto policy. Four months after its initial unveiling, the Frontier Stable Token (FRNT) is now live and available to the public, making Wyoming the first U.S. state to issue its own stablecoin. The launch signals how governments - not just private companies - are now stepping directly into the stablecoin arena following regulatory clarity introduced this summer.

A First-of-its-kind State-Backed Stablecoin

The Frontier Stable Token, issued under the oversight of the Wyoming Stable Token Commission, is pegged 1:1 to the U.S. dollar and backed by a mix of cash and U.S. Treasuries, similar to leading private-sector stablecoins. 

State officials say the token reflects Wyoming’s long-standing reputation as a crypto-forward jurisdiction, positioning the state as a laboratory for how public institutions can responsibly deploy blockchain-based financial tools.

Yield Still Under Discussion - But Not Live Yet

While early discussions hinted that FRNT could become a yield-bearing stablecoin, Wyoming officials clarified that no yield feature is currently active.

A spokesperson for the commission confirmed that yield is still being evaluated, stating that the idea remains under internal review. Wyoming Democratic State Senator Chris Rothfuss, who has been closely involved in the project, reiterated that market demand for yield-bearing stablecoins is well understood - but implementation must follow a deliberate process.

A Different Relationship With Federal Oversight

One of the most controversial aspects of Wyoming’s stablecoin is how it could interact with federal authorities. Supporters argue that, because Wyoming is a state and not a private issuer, it operates behind what Rothfuss described as a “tall fence” separating state and federal jurisdiction.

While officials were careful to speak only in a personal capacity, some backers suggested Wyoming could push back against federal requests to freeze or seize on-chain funds, positioning FRNT as structurally distinct from corporate-issued stablecoins.

Franklin Templeton to Manage Reserves

Wyoming confirmed that reserves backing FRNT will be managed by Franklin Templeton, a global investment firm with deep experience in tokenized money-market funds and crypto-related ETFs.

Multi-Chain Launch and Exchange Access

The Frontier Stable Token launched with multi-chain support, including Ethereum, Solana, Avalanche, and several Ethereum layer-2 networks. Wyoming cited LayerZero for cross-chain interoperability and Fireblocks for institutional-grade security.

FRNT is currently available through Kraken, which relocated its headquarters to Wyoming earlier this year - a move widely seen as a vote of confidence in the state’s crypto-friendly policies.

Stablecoin Revenue to Fund Public Education

Unlike most private stablecoin issuers that retain yield generated from reserves, Wyoming plans to redirect net revenue to the state’s School Foundation Fund on a quarterly basis.

Governor Mark Gordon praised the initiative as both innovative and practical, framing it as an example of how blockchain tools can deliver real public benefits rather than purely speculative gains.

A Slow Rollout - by Design

Some in the crypto industry criticized the pace of FRNT’s rollout, but Rothfuss pushed back, emphasizing that government-led innovation naturally moves slower than private-sector launches.

Why This Matters

Wyoming’s Frontier Stable Token isn’t just another stablecoin - it’s a proof of concept for how U.S. states might eventually integrate blockchain into public finance. With education funding, multi-chain infrastructure, and institutional asset management baked in from day one, FRNT could become a blueprint for other states watching closely.