On Wednesday, Wyoming's Stable Token Commission adopted Chainlink Proof of Reserve to publish verified data about the backing of its Frontier stablecoin on-chain in near real-time.
This move takes the FRNT, a state-issued stablecoin, beyond the minimum requirement for monthly disclosures set by the federal $GENIUS Act.
Network Firm Validates Compliance with AICPA Standards
The independent firm Network Firm validates the FRNT token's reserves and supply in accordance with AICPA standards. The Chainlink oracle network then publishes this validated data on-chain and updates it in near real-time.
In Wyoming, this combination is seen as a way to close information gaps that arise between official reports.
FRNT launched in January as the first stable token issued by a U.S. state. It is backed by U.S. dollars and short-term U.S. Treasury bonds, and the income generated by these reserves goes to Wyoming's state school support program, not to token holders.
"By implementing Chainlink Proof of Reserve as the exclusive asset verification infrastructure for the State of Wyoming blockchain, we are providing transparent and verifiable confirmation that the Frontier stable token is fully backed by high-quality reserve assets," the statement said.
The federal stablecoin law, the $GENIUS Act, sets baseline requirements. Issuers must disclose the composition of their reserves and the volume of coins in circulation monthly.
Wyoming had already surpassed this bar by publishing daily data on the reserve institutions participating in the FRNT program. The new integration takes this data beyond a daily snapshot.
The Commission expects the on-chain data to reflect changes in FRNT's funding as they occur between reporting cycles, rather than forcing anyone to wait for the next scheduled disclosure.
Secure Mint to Prevent Infinite Mint Attack Before It Starts
Wyoming is also developing a second Chainlink feature — Proof of Reserve Secure Mint — whose implementation, the commission said, is not yet complete. This mechanism prevents the minting of new FRNT tokens unless verified reserves equal or exceed the total token supply.
The point is to prevent infinite mint attacks, where a bad actor mints tokens without backing, and to provide holders with cryptographic proof that any newly minted FRNT is backed by real assets. It integrates reserve verification into the very minting process.
This comes after Wyoming decided in August to migrate FRNT from LayerZero to the Chainlink Cross-Chain Interoperability Protocol (CCIP) as the token's sole cross-chain bridge. Wyoming did this following a security audit, joining a migration that saw about $15 billion in blockchain value move from LayerZero to CCIP.
Recently, Chainlink became the price feed for Coinbase's tokenized B20 stocks. It also joined a group of banks in the Pangea project for Euro and Won settlements and signed an agreement with the Depository Trust and Clearing Corporation.
Cryptopolitan previously reported that DTCC selected Chainlink to launch a collateral custody application, expected to go live in Q4 2026. Chainlink's native token, LINK, traded around $11.07 on Wednesday, up roughly 35% from the previous month.
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