The first state issued stablecoin in the United States took place. This happened on January 7, 2026. Wyoming released the FRNT token, a state issued currency meant to exhibit the freedoms that are prevalent among residents of the state.
For those outside the US, this might seem like another step in government intervention. While the state is, naturally, a government, there is a component that makes this different.
Many fear central bank digital currencies (CBDC), and for valid reason. It is bad enough that we have monetary policy that is ineffective. A CBDC could hand over monetary control to those who showed themselves to be completely abysmal when it comes to fiscal policy.
In other words, providing politicians with more power might not be a good idea.
So how is this different? I will go through it along with some of the basics regarding FRNT.
The FRNT token is simply an option. It is an alternative to what else is out there.
So far, Fed Chair Powell has resisted a CBDC. At the same time, the Trump Administration (along with some Republicans) took an anti-CBDC stance. Of course, it is important to note that this could change with a new party coming to power. The permanence of this is not guaranteed.
Before getting into the dynamics, lets look at the set up.
This is an asset-backed stablecoin. It is following the same requirements which were laid out in the GENIUS Act. That pushes stablecoin issuers to back their tokens with highly liquid assets such as T-Bills or Repo contracts.
FRNT represents a state-managed alternative to privately issued stablecoins, with reserves held in trust by the State of Wyoming and invested exclusively in U.S. dollars and short-duration U.S. Treasuries. The reserves are managed by Franklin Templeton, with custody services provided by its affiliate, Fiduciary Trust Company International.
The stable token is natively issued on the Solana network and will initially be available across six additional blockchains. The chains mentioned include Avalanche, Polygon, Arbitrum, Ethereum, Base, and Optimism. Basically a variety of layer one (L1) and layer two ( L2) blockchains.
Cross-chain functionality is enabled through Layerzero, while secure infrastructure services are provided by Fireblocks. FRNT is currently available for purchase through Kraken on Solana and via Rain, a Visa-powered card platform, on Avalanche.
It is a situation that is similar to what we see with private stablecoins. They are all competing within the same market. Obviously, cross-chain integration along with wallets/exchanges are crucial.
Here is how Rafiki describes it:
Wyoming issued FRNT on January 7, 2026, as the first U.S. state-backed stablecoin under the Wyoming Stable Token Act. It's a blockchain-based asset built on Solana, fully backed by reserves, and represents a milestone in state-endorsed financial innovation. This allows for transparent, on-chain stable value tied to the dollar, with potential for broader adoption in DeFi and payments.
This is not a token that is under the control of the Federal Reserve. Nor is it one that answers to the federal government.
In the United States, there is something called states rights. The power of the federal government is limited in some capacities.
The US dollar is in the hands of the Fed. This was set up as an independent entity although that has faltered over the decades. FDR made a lot of changes which usurped the independence of the central bank. It moved it from an "insurance company", designed to prevent member bank failures to an arm of the political establishment.
When it comes to currency, within the US, states have issued their own over the centuries. Naturally, none attained the level of the US dollar and ended up going away. This does not mean the sentiment regarding localized currencies disappeared.
There are many examples of local currencies. Ultimately, these are nothing more than coupons issued among different vendors. It does, however, show the potential that exists.
We do have to acknowledge this is not a fully separate. FRNT is riding the back of the USD. It is also being backed with T-Bills or Repos, the latter which is mostly made up of the former.
What is important here is the issuer, the state, does not answer to the Feds in the same way as a private issuers. Each has to adhere to the GENIUS Act, subject to all regulation put forth. The state follows its own laws, passed through its own representation.
In the digital era, this could be an advantage. It is possible for anyone to use the currency via a wallet. Payments can be made wherever it is accepted. My expectation is that few outside the state will utilize it but I could be surprised.
To me, this is simply another pillar in the distribution curve. I wouldn't call FRNT the "freedom coin". It is still under the direct control of a government, albeit not a national one. The fact that it counters what the federal government (or central bank) could do is the value it brings.
Personally, I would like to see all 50 states issue their own stablecoins. This steer the distribution of currency away from the larger centralized entities.
