The State of Wyoming on Wednesday launched its U.S. dollar-backed stablecoin FRNT, becoming the first U.S. state to issue its own digital token.
FRNT is now available on the Solana blockchain through Kraken and on the Avalanche blockchain through Rain, a Visa-linked payments platform.
FRNT is issued by the Wyoming Stable Token Commission and backed by reserves held in trust by the state. Those reserves are invested only in U.S. dollars and short-term U.S. Treasury securities, according to a press release reviewed by The Defiant.
Reserve management is being handled by investment giant Franklin Templeton, which manages about $1.6 trillion in assets, while custody is provided by its affiliate, Fiduciary Trust Company International.
The launch reflects growing interest from public institutions in using blockchain technology within existing legal and financial systems. It also signals stablecoins expanding beyond private companies into government issuance.
Currently, the stablecoin sector has a market capitalization of more than $309 billion, up from $208 billion in January 2025, according to data from DeFiLlama. Tether’s USDT and Circle’s USDC account for most stablecoin usage.
“By introducing the nation’s first state-issued stable token, we are demonstrating how thoughtful, transparent regulation and new technologies can be harnessed to expand access, lower costs, and strengthen public trust,” said Wyoming Governor Mark Gordon in a statement.
“Our collaboration with the State of Wyoming demonstrates what’s possible when the public and private sectors work together to create a compliant, trusted framework for digital assets,” echoed Jenny Johnson, CEO of Franklin Templeton.
When Wyoming first announced plans for FRNT in August 2025, the move sparked debate over whether state-issued stablecoins could blur the line between decentralized crypto and government-controlled digital money.
Critics raised concerns about privacy and expanded government involvement, while supporters said state backing could help speed adoption by placing stablecoins under clear legal oversight.
“The scary part is whether D.C. and the Fed take this as a green light to roll out their own fully controlled coin,” Kadan Stadelmann, CTO at Komodo, told The Defiant at the time. “A federal CBDC would be surveillance on steroids. That’s the nightmare scenario, a coin you can’t spend without permission.”
