Frontier: Wyoming’s First State-Backed Stablecoin Lands on Ethereum and Solana

The Frontier stablecoin has been deployed on seven blockchains via LayerZero technology. Supported by the State of Wyoming, it aims to use the income from its reserves for education, with possible redistribution to holders in the future.

An unprecedented launch in the stablecoin landscape

Wyoming has just launched Frontier (FRNT), the first stablecoin issued and supported by an American state. It is designed in partnership with LayerZero.

This token made its debut simultaneously on seven blockchains, including Ethereum, Solana, Avalanche, as well as Polygon, Arbitrum, Optimism and Base.

This multi-network approach is based on LayerZero’s Omnichain Fungible Token (OFT) standard, already used by PayPal for its PYUSD stablecoin. It theoretically allows compatibility with more than 110 blockchains. Thus, it enhances the accessibility and smooth circulation of FRNT.

In a sector largely dominated by Tether (USDT) and Circle (USDC), the arrival of a state-backed token represents a major breakthrough. Wyoming affirms its ambition to make FRNT an asset protected by the Constitution. It is therefore presented as a public good, rather than a simple financial product.

In a tweet, The Wyoming Stable Token Commission writes:

FRNT is designed to provide transparent, and efficient digital transactions for individuals, businesses, institutions – worldwide. This groundbreaking initiative cements Wyoming at the forefront of digital finance and blockchain innovation.

A stablecoin in the service of the public

Most traditional stablecoins primarily benefit private companies. FRNT, on the other hand, stands out for its redistribution model. It is backed by U.S. Treasury bonds and cash. Thus, it will pay the interest earned directly to the Wyoming School Foundation Fund, on a quarterly basis.

In the future, FRNT could also share a part of this income with token holders, although this feature is not yet activated.

Senator Chris Rothfuss emphasized that this innovation fits into a financial sovereignty logic. Wyoming seeks to distinguish itself from the classic model of private stablecoins.

A project that divides the political scene

Although FRNT was presented as a symbolic and constitutional advancement, it is not unanimous. Republican Representative Tom Emmer strongly criticized the project. Indeed, he considers it rather a disguised CBDC, contrary to the spirit of monetary freedom he defends.

Faced with these criticisms, Anthony Apollo, executive director of the Wyoming Stable Token Commission, did not remain silent. He replied by saying that FRNT is not a central bank digital currency. Unlike a CBDC, the State cannot use this token to restrict or monitor transactions, nor impose arbitrary uses.

He cites a striking example: where a private company might ban the purchase of firearms with its stablecoin, Wyoming, constrained by the Second Amendment, would not have this power. A position intended to reassure defenders of individual freedom.

The launch of FRNT comes at a time when US regulators remain wary of stablecoins since the collapse of TerraUSD in 2022. Yet, Wyoming manages to get a public and multi-chain token approved at a time when many still feared a simple and outright ban of the sector.