2026-01-08 19:40:37

Wyoming has launched the FRNT stablecoin, the first fiat-pegged stablecoin product supported by a state government in the United States. This stablecoin adopts a relatively conservative collateralization strategy—each token is backed 1:1 by an equivalent amount of USD and short-term government bonds, with a legal requirement to maintain a 2% over-collateralization reserve, further enhancing asset security.

From an on-chain application perspective, this stablecoin has been listed on a major exchange, supporting cross-chain interoperability across 7 mainstream public chains including Ethereum, Solana, and Polygon, significantly improving liquidity and usability. Interestingly, the interest generated from reserve assets does not go to the issuer but is dedicated to supporting educational initiatives. This design approach endows the stablecoin with more social attributes. Overall, this is a beneficial exploration of the integration of traditional finance and blockchain technology.

ETH1%

SOL2,33%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
7
Repost
Share

Comment

0/400

ImpermanentLossFan

· 21h ago

State government-backed stablecoins? Traditional finance is really coming now, and it feels a bit different.

View OriginalReply0

ColdWalletGuardian

· 01-09 06:55

State government-backed stablecoins, now traditional finance is really starting to take it seriously.

View OriginalReply0

Lonely_Validator

· 01-08 21:46

Wyoming's recent move is quite impressive—sovereign debt backing + excess reserves, it feels much more reliable than those flashy stablecoins. --- Supporting education with interest income? I haven't seen this setup before; it's a bit surprising. --- All 7 public chains are supported, and the liquidity coverage is quite broad. But whether there will be enough users who actually use it remains to be seen. --- The stablecoin backed by the state government has finally arrived, but does this thing really change anything? The market isn't short of stablecoins. --- 1:1 USD + government bonds, the kind you can sleep peacefully knowing it's safe. It's just a bit too conservative—what about the yield? --- I have to admit, the education fund is better than projects that purely cut the leeks, but it feels more like a PR stunt. --- Traditional finance combined with blockchain? I want to see how many real users are left after six months.

View OriginalReply0

ForkItAll

· 01-08 20:09

State government stablecoins? How far this approach can go is uncertain, but the idea of donating interest to education is indeed interesting. It's definitely better than flowing into the pockets of capitalists.

View OriginalReply0

LiquidityHunter

· 01-08 20:02

Wait, 7 public chains cross-chain interoperability? We need to check the liquidity depth on each chain. The slippage for USDC on Polygon can reach 0.3%. With such scattered FRNT distribution, won't it become a paradise for arbitrage bots... 2% excess reserve sounds good, but how does it actually perform in practice?

View OriginalReply0

WhaleMistaker

· 01-08 19:59

Wyoming finally did something reliable, and the interest can even be used for education? Much better than some coins used to harvest retail investors.

View OriginalReply0

ForkPrince

· 01-08 19:46

Huai Zhou's setup is so solid, 1:1 USD to government bonds... feels much more reliable than some meme coins.

View OriginalReply0