Wyoming Adopts Chainlink to Verify Reserves for State-Issued Stablecoin FRNT

Wyoming will use Chainlink to verify the reserve assets backing its state-issued stablecoin.

The Block reported on September 2 that the Wyoming Stable Token Commission recently adopted Chainlink’s Proof of Reserve, or PoR, system as the onchain asset-verification infrastructure for Frontier Stable Token, or FRNT.

External verification of FRNT’s reserve assets will be handled by accounting firm The Network Firm. The firm will verify the actual reserve assets against the amount of FRNT issued under standards set by the American Institute of Certified Public Accountants, or AICPA.

Chainlink will transfer the verified reserve data onto the blockchain. Wyoming said that will allow regulators and financial institutions to confirm in real time whether reserve assets matching FRNT issuance actually exist.

Wyoming will also adopt Chainlink’s Secure Mint feature. That function allows new stablecoins to be issued only when verified reserve assets are equal to or greater than FRNT’s total supply.

Secure Mint is designed to reduce the risk of large-scale token issuance without reserves due to hacks or smart-contract errors. Chainlink linked reserve data with token minting so new issuance stops when reserves are insufficient.

Wyoming also migrated FRNT’s cross-chain transfer system last month from LayerZero, or ZRO, to Chainlink’s Cross-Chain Interoperability Protocol, or CCIP.

FRNT launched in January as the first stablecoin issued directly by a US state government.