After Launch for Business Transactions in August, Wyoming Makes Its Stablecoin Available to the Public
In a move that follows the introduction of the Frontier Stable Token (FRNT) as a product for business transactions last August, the state is now making its stablecoin available to the general public this week. The question now is whether this wider market will embrace FRNT.
The token can be purchased on Kraken via the Solana blockchain or through Rain, Visa’s integrated card platform, which operates on the Avalanche blockchain. Its value will be backed exclusively by U.S. dollars and short-duration U.S. Treasuries.
Wyoming as a Leading State in Crypto Adoption
Wyoming has emerged at the forefront of crypto adoption, having passed approximately 30 laws to foster innovation in digital assets. This led Kraken to relocate its headquarters from San Francisco to Cheyenne, Wyoming, last June, likely contributing to securing trading rights for FRNT.
The state aims to facilitate the use of this stablecoin for retail transactions. Transactions on FRNT settle quickly and carry transaction fees under one cent per transaction. Anyone with an internet connection can participate.
Encouraging Retail Use
Wyoming intends for FRNT to be used in governmental payments, which could reduce processing costs. For instance, the Converse County Treasurer noted that last year’s $3.4 million in credit card transactions incurred fees of about $70,000, a cost that could potentially be mitigated with electronic payments like FRNT.
However, more can be done to boost adoption. Hugentobler from Javelin Strategy & Research suggested integrating the FRNT stablecoin into state and county online portals for smoother transactions or providing incentives such as waiving surcharges or offering discounts.
Possibility of Yield Distribution
Some state officials propose that yield generated from the token’s reserves could be distributed to individual holders. Senator Chris Rothfuss has argued that, unlike other stablecoin issuers, Wyoming can offer this benefit because it is not a private business.
Currently, interest earned from these reserves funds Wyoming schools. Nevertheless, Anthony Apollo, the Executive Director of the Wyoming Stable Token Commission, advocates for distributing some of the Treasury interest directly to individual token holders.
