Wyoming Adopts Chainlink to Verify Stablecoin Reserves

Wyoming will use Chainlink’s Proof of Reserve technology to verify on-chain, in near real time, the reserves backing its state-issued stablecoin, Frontier Stable Token, or FRNT.

The Wyoming Stable Token Commission has adopted Chainlink Proof of Reserve as the reserve verification system for FRNT, The Block reported on Sept. 3. Wyoming had previously shifted FRNT’s cross-chain infrastructure in August from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol, or CCIP.

The addition will let the market view independent external verification results for FRNT reserves alongside on-chain data. Wyoming already meets the transparency standards required under the GENIUS Act, the U.S. stablecoin law, but plans to strengthen its verification framework so reserve information can be checked more continuously.

The Network Firm, an accounting and verification company, will review FRNT’s reserves and token supply under standards set by the American Institute of Certified Public Accountants, or AICPA. Chainlink Proof of Reserve will then update the verified reserve data on-chain in near real time. The setup is intended to narrow information gaps between periodic reports and allow regulators, institutional investors and other market participants to directly confirm whether FRNT is fully collateralized.

Wyoming also plans to apply reserve verification at the token issuance stage. The commission is pursuing the adoption of Proof of Reserve Secure Mint, under which new tokens can be issued only when verified reserves are at least equal to FRNT’s total supply. The mechanism is designed to prevent so-called infinite-mint attacks, in which tokens are created without backing assets.

Anthony Apollo, executive director of the Wyoming Stable Token Commission, said the adoption of Chainlink Proof of Reserve as Wyoming’s exclusive on-chain asset verification infrastructure would provide a transparent and verifiable way to confirm that FRNT is fully backed by high-quality reserve assets.

FRNT, launched in January, is the first stable token issued by a U.S. state government. It is backed by U.S. dollars and short-term U.S. Treasuries. Income generated from the reserves will be used to diversify Wyoming’s revenue sources and support the state’s School Foundation Program.