The Wyoming Case Study: A Stable Token With Statehood

Last August, Wyoming became the first U.S. public entity to issue a fiat-backed, fully reserved stable token. As of today, January 7, 2026, the Frontier Stable Token (FRNT) is now available for purchase on Kraken.

When The Frontier Stable Token (FRNT) initially launched on LayerZero, the state summed up the choice clearly:

“Their Omnichain Fungible Token (OFT) Standard and extensive experience in secure smart contract development offers a robust, scalable, and compliant solution that satisfies the Wyoming Select Committee on Blockchain’s encouragement to offer FRNT across multiple blockchain networks.”

It’s hard to overstate how unprecedented this is. A U.S. state progressed from legislation, to proof-of-concept, to issuing a fully reserved stable token for real-world use. This isn’t just a U.S. state passing legislation on stable tokens or running a proof-of-concept – It’s a U.S. state issuing one. Wyoming has a long history of setting national precedents (they were the first to enact the LLC) and this moment carries that same weight.

Years of federal scrutiny saw stablecoins labeled as potential systemic threats to financial systems. The largest stablecoin in the world, USDT, was even prohibited from operating in New York.

This issuance sets a new standard for public-sector digital assets by combining complete sovereign control, regulatory compliance at every layer, and the technical sophistication to operate across global financial networks.

The Frontier Stable Token (FRNT) simultaneously launched across seven blockchain networks, including Ethereum, Solana, Avalanche, Base, Optimism, Polygon, and Arbitrum. What follows is a closer look at why the first stable token with statehood chose LayerZero.

The Interoperability Imperative

The Wyoming Stable Token Act required the FRNT stable token to be:

Fully backed by cash and short-duration U.S. Treasuries
Issued and governed by the Wyoming Stable Token Commission
Overcollateralized before returning income to the state’s school foundation program

Further, a November 8, 2023 letter from Wyoming’s Select Committee on Blockchain encouraged the Commission to pursue a “multi-chain, technology-neutral approach” ahead of its robust procurement process.

No U.S. government entity had ever taken a compliant stable token live, much less across seven chains, EVM and non-EVM alike.

Enter LayerZero.

Meeting Wyoming Where It Matters

Wyoming chose LayerZero following an extensive RFQ (Request for Qualification) and RFP (Request For Proposal) process that evaluated thirty-one competing vendors. The state’s requirements called for the same level of control expected of dollar issuers in traditional finance.

Despite a robust slate of qualified candidates, only LayerZero's architecture provided:

Multichain Issuance: The OFT Standard enables direct token creation on each chain without bridges or wrapped tokens, eliminating counterparty risk and maintaining a strict 1:1 dollar backing across every chain. LayerZero offers a suite of 150 blockchains, and Wyoming initially decided to launch on 7. A month after the technical launch, it was announced that FRNT would soon also be available on Hedera (another chain connected to LayerZero). This is the flexibility this architecture affords. New networks can be added as the Commission continues their quarterly Blockchain Selection Exercise without rebuilding the underlying system.
Unique Security: LayerZero’s modular architecture allows Wyoming to operate its own decentralized verifier network (DVN). Unlike traditional stable tokens where a private company or crypto protocol controls these functions, Wyoming oversees all verification and compliance functions including minting, redemptions, freezes, and the seizure of illicit funds. The model lets Wyoming apply its own policy framework, enforced by signing off on each transaction.
Granular Control: Through LayerZero’s integration with Fireblocks’ ERC20F standard, Wyoming gained full operational control over FRNT. This adds role-based permissions that define exactly who can mint, burn, pause transfers, or push upgrades for FRNT. Deny-lists give Wyoming the ability to restrict distribution or freeze illicit activity directly in the token logic. And because ERC20F contracts are upgradeable, Wyoming can fix bugs or evolve policy without downtime. A level of control traditional issuers expect.

LayerZero gave Wyoming a solution that met every legislative and technical constraint. No compromises.

Government-Grade Security

Unlike typical deployments, Wyoming subjected its stable token infrastructure to the same scrutiny applied to critical financial systems.

The state commissioned three independent security audits, examining smart contract security, cross-chain message integrity, and compliance. LayerZero’s implementation passed all three audits without a single architectural change, a strong validation of both the protocol and the maturity of the OFT standard.

Following mainnet deployment, Wyoming demonstrated:

Same chain wallet-to-wallet exchanges, and live cross-chain transfers via Stargate Finance for all 7 networks.
Full implementation of Fireblocks AccessRegistry and ERC20F for compliance enforcement, inclusive of cross-chain transfers.
Seamless mint and burn operations for FRNT across the initial seven blockchains.

All compliance features were stress-tested, and clear operational procedures were established to allow only authorized Licensed Service Providers to receive tokens. The system maintained 100% uptime and full transaction integrity throughout the validation period. These assurances were further reinforced by LayerZero’s proven standard, including a $15M+ bug bounty and a track record of zero exploits.

Setting the New Standard

By building on LayerZero, Wyoming now has immediate access to 150+ connected chains should the state choose to expand the Frontier Stable Token’s reach.

Wyoming keeps the ability to follow market demand and user preference without redeploying infrastructure. As new ecosystems gain traction or regional networks emerge, FRNT can simply extend to those environments while Wyoming maintains control over all tokenization operations and compliance functions. Institutional future-proofing in practice.

The standard Wyoming set here goes past simply adding more chains. Being a fully reserved dollar that can circulate across global, permissionless networks, FRNT becomes a new kind of public-sector asset. State-backed, instantly portable, and accessible to anyone on any chain. FRNT issued by Wyoming can now move through the same infrastructure that powers the rest of DeFi. Individuals, institutions, and developers across borders have a state-issued asset that works across blockchains.

"FRNT will grant holders the ability to transmit dollar-denominated transactions of any value, anywhere in the world, nearly instantly, with significantly reduced fees compared to traditional ACH or wires."

– Anthony Apollo, Executive Director, Wyoming Stable Token Commission

Conclusion

With FRNT leading the way, it’s clear that future assets built on LayerZero gain a flexible framework that can align with any jurisdiction’s requirements through:

Maintaining complete control over monetary operations: Each issuer can write its own rules directly into the code. Sovereignty means that Wyoming can prioritize individual freedoms over random account freezes.
Ensuring regulatory compliance without sacrificing functionality: The same modular system that lets Wyoming comply with state laws can be configured for New York's BitLicense requirements or Europe's MiCA regulations.
Achieving seamless composability for future uses: Tokens plug into any supported chain and its ecosystem out of the box, enabling broad smart contract compatibility with no added risk.

For decades, governments have debated how to modernize commerce without weakening sovereignty or security. Wyoming has shown the path forward: clear legislation, rigorous standards, and infrastructure designed to scale with the future of digital markets.

With LayerZero, the Frontier Stable Token proved that public-sector money can be sovereign, programmable, and ready for multichain markets where value moves anywhere it’s needed.

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Mark

Jan. 07, 2026

Case Study

Mark

Jan. 07, 2026