Wyoming just made a quiet move that could change how U.S. states use digital dollars.
The state has officially launched FRNT, the first state-issued stablecoin in the United States. That means a U.S. state is now running its own dollar-backed token on public crypto markets.
The token went live on January 7, according to Wyoming Public Media and the state’s Stable Token Commission.
FRNT is already trading on Kraken, a crypto exchange based in Wyoming, and it launched on the Solana blockchain. Even more important, it isn’t locked to just one network. Using Stargate, FRNT can move across Ethereum, Arbitrum, Avalanche, Base, Optimism, Polygon, and Solana.
Stablecoins are meant to stay close to the value of the U.S. dollar, but FRNT is different from everything that came before it. This is the first time a U.S. state itself has issued one. The project has been years in the making, built on nearly a decade of laws, planning, and testing.
So far, Wyoming has spent about $6 million to get the project off the ground. Lawmakers are still debating whether to add more funding as the token rolls out to the public.
The reserves behind FRNT are managed by Franklin Templeton and held inside a Wyoming-chartered trust. Officials say the reserves are fully backed and over-collateralized, made up of U.S. dollars, cash-like assets, and short-term U.S. Treasury bills.
Here’s the part that stands out: the interest earned on those reserves goes to Wyoming public schools. Instead of profits flowing to a private company, the state keeps the revenue.
Right now, FRNT does not pay interest to token holders. State officials say that decision was made because U.S. rules around interest-bearing digital assets are still unclear. If federal guidance changes, the structure could change later.
Wyoming leaders see FRNT as more than just a token. They see it as a real-world test of state-backed digital money.
One goal is cutting down on payment processing costs for government services. Credit card fees eat into budgets, especially for counties with high transaction volumes and tight margins.
Converse County Treasurer Joel Schell said his county loses tens of thousands of dollars each year just to card processing fees. By moving payments on-chain through a stable token, the state believes it can lower costs and keep more money inside public systems.
The launch comes after several delays over the past year, but officials say there were no technical or liquidity problems on day one. Trading volume is still small, which is normal for a brand-new stablecoin—especially one issued by a government.
Now, analysts are watching closely. If FRNT proves useful and gains liquidity, it could become a model for other states looking at blockchain-based finance.
Wyoming’s crypto-friendly laws helped it move first, but wider adoption will depend on real usage, growing volume, and how regulators react as state-issued digital dollars start circulating.
The Wyoming Stable Token Commission is set to meet again on January 15 to review early results and decide what comes next.
