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Wyoming’s Stable Token Commission is launching its yield-bearing state stablecoin, FRNT, across seven blockchains using LayerZero’s tech.
The “Frontier” stablecoin, which is backed by US dollars and short-term US Treasurys and won’t have a fixed supply, is being deployed on Ethereum, Solana, Base, Arbitrum, Optimism, Polygon and Avalanche.
It’s a first for any US state — and a sign that you can just do things.
It has taken a few years, though: The Wyoming Stable Token Act passed in March 2023, which established the Commission and set all this in motion.
“When I heard that a state was doing this, I was like, okay, like, that’s kind of crazy. Clearly very forward-thinking and innovative,” LayerZero CEO Bryan Pellegrino told me in an interview.
“Wyoming has done this with their banking regulation around crypto, with all of the DAO structure. They’ve been really, really progressive on that side,” he added. “They had the vision of like, hey, we have a competitive advantage here that no central issuer has, right?”
Some of the profits from FRNT interest will be paid to the Wyoming School Foundation to fund state-level education (the Stable Token Act states that after operational costs are deducted, some profits will be kept as savings for future expenses).
The Commission says the stablecoin facilitates “secure, transparent, and efficient digital transactions” and is intended for people and businesses around the world. Like all crypto transactions, FRNT transactions in theory let users avoid middlemen payment providers, but users will still have to pay a nominal fee every time.
Besides funding education, the move puts Wyoming on the global stage yet again as a key crypto player — and destination.
Pellegrino predicts FRNT will see adoption from emerging markets looking to gain access to the US Dollar and economy.
“Getting exposure to it will become easier and easier as it’s adopted in more places,” he said.
Wyoming Stable Token Commission Executive Director Anthony Apollo explained in a statement that using LayerZero’s tech allows them to adhere to state guidance to take a “multi-chain, technology-neutral” approach.
The stablecoin on Solana will be available on Kraken “in the coming days,” according to a release from Wyoming Governor Mark Gordon.
FRNT will also be available to spend via a Visa card from payments firm Rain.
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