Wyoming has launched the Frontier Stable Token (FRNT), the first state‑issued stablecoin in the United States, on January 7, 2026. The token is fully backed by U.S. dollars and short‑duration Treasury securities, with reserves held in trust by the state and managed by Franklin Templeton’s Fixed Income division.
Franklin Templeton, which manages roughly $1.68 trillion in assets, was named the reserves‑management partner. The firm will oversee the $1.6 trillion of assets that back the token’s reserves, positioning it at the center of a new public‑sector digital‑asset initiative and expanding its footprint in regulated blockchain infrastructure.
The partnership gives Franklin Templeton a high‑profile platform to showcase its blockchain expertise. By providing a compliant, transparent framework for a state‑issued stablecoin, the firm can attract institutional clients seeking regulated digital‑asset solutions and accelerate its broader goal of scaling native on‑chain mutual funds.
The launch follows Wyoming’s 2023 Stable Token Act, which created a legal framework for state‑issued digital currencies. FRNT is unique in that it is the first stablecoin issued by a U.S. state, differentiating it from privately issued stablecoins such as Tether and USD Coin.
Franklin Templeton’s tokenization strategy has already produced a $800 million tokenized money‑market fund (FOBXX) as of July 2025. The new partnership is expected to support the firm’s expansion of alternative‑asset offerings and generate new fee income, reinforcing its competitive position in the growing digital‑asset market.
Management comments underscore the significance of the initiative. CEO Jenny Johnson said the partnership demonstrates the potential of public‑private collaboration to create a trusted framework for digital assets, while EVP and Head of Innovation Sandy Kaul highlighted the opportunity to showcase blockchain technology to a broader institutional audience.
The stablecoin launch aligns with evolving regulatory discussions, including the GENIUS Act’s dual federal‑state licensing regime for payment stablecoins. While state‑issued stablecoins occupy a legal gray area, Wyoming’s FRNT provides a test case for how such instruments can operate within existing regulatory frameworks.
Analysts note that the partnership signals Franklin Templeton’s continued confidence in regulated digital‑asset solutions. The firm’s recent earnings beat, driven by strong performance fees and higher average AUM, supports its strategy to invest in tokenization and blockchain infrastructure.
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