Wyoming expands FRNT stablecoin to Hedera in blockchain push

The FRNT stablecoin, Wyoming’s state-issued digital currency, will expand to the Hedera network following a decision by the Wyoming Stable Token Commission during its Q2 evaluation on September 4. The move makes Hedera the eighth blockchain to support FRNT, joining Ethereum, Solana, and other established networks.

The commission cited Hedera’s compliance-focused governance model, transaction speed, and system reliability as the decisive factors.

“Our goal with FRNT is to set a new standard for how states leverage digital assets to better serve the public,” — Anthony Apollo, Executive Director of the Wyoming Stable Token Commission, said in a statement. “The Commission selected Hedera for candidacy because its technical edge aligns with our commitment to security and compliance.”

The decision underscores Wyoming’s ambition to use the FRNT stablecoin not just as a digital asset, but as a tool of public policy fully backed by U.S. dollars, short-term Treasuries, and an additional two percent reserve.

Linking stablecoin growth to public benefit

Unlike privately issued stablecoins, the FRNT stablecoin is designed to channel benefits directly to state services. Interest earned on its reserves is legislated to support Wyoming’s School Foundation Program, effectively tying its financial success to public education.

The model reflects the vision of the 2023 Wyoming Stable Token Act, which authorized the creation of FRNT. Officials argue that by using blockchain infrastructure, the state can reduce intermediary fees, speed up transactions, and redirect savings to public programs.

“Stablecoins are often seen as speculative assets, but Wyoming is showing they can also serve as public goods,” said Clara Medici, Senior Analyst at Chainalysis. “The FRNT stablecoin is unique because it institutionalizes transparency and ties returns to education funding.”

To implement the program, Wyoming has enlisted private-sector partners including LayerZero for cross-chain issuance, Franklin Advisers for reserve management, and Fireblocks for security infrastructure. Distribution currently runs through controlled channels such as Kraken and Rain’s Visa-integrated card platform on Avalanche.

Pilot use cases inside state government

The Hedera integration is expected to expand pilot programs already underway with the FRNT stablecoin. According to the Hedera team, FRNT has been tested for specific government applications such as paying state contractors, distributing emergency relief funds where speed is critical, and streamlining payroll for public employees.

Supporters say these pilots demonstrate how blockchain can make government operations more efficient and transparent. For example, using FRNT for relief payments could reduce delays during natural disasters by ensuring funds reach recipients immediately without banking intermediaries.

“This isn’t about hype,” said Michael Shaulov, CEO of Fireblocks, one of the project’s partners. “It’s about building secure, compliant infrastructure that directly impacts how governments move money.”

However, the FRNT stablecoin remains restricted in scope. Regulatory hurdles mean it is not yet available for public retail use. As journalist Eleanor Terrett noted last month, “due to lingering regulatory hurdles, the token is not yet available to the public.” Until broader permissions are granted, FRNT will remain confined to institutional and state-level functions.

Balancing innovation and regulation

The FRNT stablecoin project highlights a growing tension for policymakers: how to innovate within the digital asset space while preserving oversight and consumer protection. Wyoming’s framework, with its emphasis on compliance and state oversight, offers a potential model for other jurisdictions considering similar initiatives.

Yet challenges remain. Public accessibility is limited, and adoption at scale will require cooperation from federal regulators. Moreover, questions persist over whether state-issued digital currencies could coexist with or potentially complicate any future U.S. central bank digital currency (CBDC).

Still, Wyoming’s initiative positions it as a pioneer in digital finance. If successful, the FRNT stablecoin could inspire other states to experiment with blockchain-backed financial instruments tied to public benefit.

For now, the expansion to Hedera reinforces the state’s commitment to building a multi-chain, compliance-ready foundation. Whether it can transition from pilots to broad adoption will be a key test for both Wyoming and the broader movement toward government-backed stablecoins.