Wyoming launches state-backed stablecoin as public finance experiment

• Wyoming has launched FRNT, the first stablecoin issued and backed by a US state government.
• The dollar-pegged token is fully backed by cash and Treasuries and managed by Franklin Templeton.
• Interest from reserves is directed to Wyoming public schools rather than token holders.

Wyoming has formally entered the digital asset market by issuing the first stablecoin created and backed by a US state government.

The launch places a publicly managed dollar-pegged token directly onto open crypto networks, marking a shift from privately issued stablecoins that currently dominate the market.

Known as the Frontier Stable Token (FRNT), the project reflects years of legal and technical groundwork and positions Wyoming as a testing ground for how blockchain-based money could function inside public finance systems.

The token’s debut also arrives as US regulators continue to debate how digital dollars should be governed, leaving states to explore their own approaches within existing frameworks.

How the token enters crypto markets

The Frontier Stable Token went live on January 7, according to an announcement carried by Wyoming Public Media and confirmed by the state’s Stable Token Commission.

Trading is initially available on Kraken, a Wyoming-based cryptocurrency exchange, with issuance beginning on the Solana blockchain.

While Solana is the first network used, the token has been designed for broader reach.

Through Stargate, the stablecoin can move to Ethereum, Arbitrum, Avalanche, Base, Optimism, Polygon, and Solana.

This multi-chain structure allows the token to circulate beyond a single ecosystem, increasing its potential use across decentralised finance applications and payment rails without being locked into one network.

Backing structure and reserve controls

Wyoming has allocated $6 million to the project so far, with further funding still under discussion as public trading begins.

The reserves backing the token are held in a Wyoming-chartered trust and managed by Franklin Templeton.

Those reserves are reported to be fully backed, consisting of US dollars, cash equivalents, and short-term US Treasury securities.

Rather than being distributed to token holders, interest generated from the reserve assets is directed to Wyoming public schools.

Why holders receive no yield

At launch, the stablecoin does not offer yield to users who hold it.

State officials have linked this decision to regulatory uncertainty in the US surrounding interest-bearing digital assets.

By avoiding yield payments, Wyoming aims to reduce legal risk while federal rules remain unsettled.

Officials have indicated that the structure could be revisited in the future if clearer guidance emerges at the national level. Any changes would depend on how regulators define the boundaries between stablecoins, securities, and banking products.

Testing payments inside government systems

Beyond acting as a digital dollar, the stablecoin is also being explored as a payment tool for government services.

Wyoming officials have highlighted the cost of card processing fees, which can significantly reduce net revenue for local administrations.

In counties with high transaction volumes and fixed margins, these fees are seen as a growing strain.

By settling payments on-chain, the state is examining whether digital tokens could lower costs and speed up settlement while keeping more value within public systems.

The public launch follows several delays over the past year, although no technical or liquidity issues have been reported so far.

Early trading volumes remain modest, which is typical for a newly issued stablecoin, particularly one issued by a government.

The Wyoming Stable Token Commission is scheduled to meet on January 15 to review early performance and discuss next steps as the experiment moves forward.