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Wyoming has become the first US state to issue a stablecoin with the launch of its Frontier Stable Token (FRNT).
FRNT will be backed by short-duration US Treasury bills and dollars, with a statutorily mandated 102% reserve requirement ensuring the stablecoin is overcollateralized.
“This historic move marks Wyoming as the first public entity in the United States to issue a blockchain-based stable token,” the Wyoming Stable Token Commission, a body authorized by the state to issue the stablecoin, said in an Aug. 19 announcement.
Wyoming Stablecoin Has Been Deployed On Arbitrum, Ethereum, Solana And Others
The stablecoin has already been deployed on seven blockchain networks. They are the layer-2 networks Arbitrum, Polygon, Optimism and Coinbase’s Base, and layer-1 blockchains Avalanche, Ethereum and Solana.
BREAKING: The Wyoming Stable Token Commission’s FRNT, the first stablecoin issued by a U.S. State, is coming to Solana 🔥🔥🔥 pic.twitter.com/OZyKrvnKM4
— Solana (@solana) August 19, 2025
The networks, according to the announcement, were selected “through a robust candidacy process,” and were chosen because they are “publicly accessible and transparent.”
While FRNT has been launched on the mainnet, it is not yet available to the public.
“FRNT will be made available for purchase on the Solana blockchain through Wyoming-domiciled digital asset exchange Kraken in the coming days, as well as Rain’s Visa-integrated card platform on the Avalanche blockchain,” the commission said in its announcement.
LayerZero will be used to issue FRNT tokens across the seven blockchain networks, while Fireblocks has been chosen to provide the blockchain infrastructure for the token.
FRNT’s reserves will be managed by Franklin Advisers, Inca Digital will provide the project with open-source intelligence and The Network Firm will perform the financial audits and monthly attestations for the Wyoming stablecoin.
Once open to the public, users will be able to transact with the token wherever Visa is accepted. This means supported payment channels include major mobile payment and digital wallet services such as Apple Pay and Google Pay. Physical bank cards will also be an option.
Visa CEO says, “We’ve been embracing stablecoins.”
Over $10B in stablecoins are issued on Solana, with $140B+ in monthly volume (source: @artemis)
accelerate pic.twitter.com/OBplBSJKWi
— Solana (@solana) June 24, 2025
GENIUS Act Gives Stablecoin Market Regulatory Clarity
Wyoming’s stablecoin initiative started back in 2023, when the state created its Stable Token Commission to develop and issue a USD-pegged token as well as oversee its integration into public finances.
The state’s announcement comes months after US President Donald Trump signed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on July 18.
That Act is the first major federal legislation in the US that regulates stablecoins. Its core provisions include defining “payment stablecoins,” as well as establishing the rules around who can issue them.
Only US-based subsidiaries of insured banks or credit unions, nonbank firms approved by the Office of the Comptroller of the Currency (OCC), or state-qualified issuers operating under a similar regulatory framework are considered “Permitted Issuers” under the GENIUS Act.
The legislation also requires that stablecoins have at least a 1:1 backing with their reserves, and obligates issuers to follow bank-like rules. Stablecoin issuers are prohibited from offering holders yield or interest as well.
Stablecoin Market Booms
Following the GENIUS Act’s signing, the stablecoin market has blossomed under the long-awaited regulatory clarity.
Data from the decentralized finance (DeFi) aggregator DefiLlama, shows the capitalization for the sector has soared to a new all-time high (ATH) in recent weeks.
Stablecoin market overview (Source: DefiLlama)
Currently standing at $276.804 billion, the combined valuation of the market has soared by more than $9.41 billion in the last 7 days alone.
Tether’s USDT token has maintained its dominance in the market even as competitors like Circle’s USDC make regulatory progress and gain market traction.
According to CoinMarketCap, USDT’s capitalization stands at above $167 billion, which accounts for around 60% of the space’s total value.
USDT’s market cap is also almost $100 billion more than USDC, the second biggest stablecoin by market capitalization.
The stablecoin market is also expected to boom in coming years. US Treasury Secretary Scott Bessent predicted the market cap for these stable tokens could soar to $2 trillion in the future, while Goldman Sachs has predicted a 40% compound annual growth rate for compliant stablecoins, such as USDC, between 2024 and 2027.
Standard Chartered and JP Morgan have made similar predictions.
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