The Wyoming Stable Token Commission has fully migrated away from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP), adopting it as the exclusive cross-chain infrastructure for the Frontier Stable Token (FRNT) under a multi-year contract.
Background on the Frontier Stable Token
FRNT is described as the first sovereign stable token in the US, representing public-sector financial infrastructure for the state of Wyoming. It is a fiat-backed, fully reserved stable token issued by a public entity, designed to provide digital dollar infrastructure for individuals, businesses, institutions, and public-sector use cases, including payments and settlement.
A letter from Wyoming's Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology, dated 8 November 2023, encouraged the Commission to adopt a multi-chain, technology-neutral approach to deploying the token. FRNT has since been deployed across eight public blockchains, following a quarterly blockchain selection process conducted by the Commission. The token is currently available on Arbitrum, Avalanche, Base, Ethereum, Hedera, Optimism, Polygon, and Solana.
Reasons for the migration
The Commission initially deployed FRNT using LayerZero's omnichain fungible token standard. Following a security review, the Commission opted to deprecate the LayerZero implementation in favour of Chainlink CCIP.
Anthony Apollo, Executive Director of the Wyoming Stable Token Commission, said the Commission had proactively conducted a security review and identified concerns relating to LayerZero's disclosure practices and operational security. He said the review led the Commission to conclude that Chainlink CCIP was the cross-chain infrastructure that met its security and reliability requirements.
About Chainlink CCIP
Chainlink describes CCIP as using a defense-in-depth security approach, including SOC 2 Type 2 certification, an audited codebase, monitoring systems, built-in risk controls, and a decentralised architecture in which each transaction is validated redundantly by a minimum of 16 independent node operators. The infrastructure operates on the same decentralised oracle network that has supported more than USD 33 trillion in transaction value and is used across a significant portion of the decentralised finance (DeFi) sector, as well as by a range of financial institutions and market infrastructure providers.
Company commentary
A company official at the Wyoming Stable Token Commission said building public-sector financial infrastructure carries a responsibility to protect the people, businesses, and institutions relying on it, adding that the adoption of Chainlink CCIP is intended to provide cross-chain infrastructure that meets that standard, and that Wyoming expects to expand its use of Chainlink's infrastructure going forward.
Chainlink co-founder Sergey Nazarov said Wyoming has been an active participant in digital asset policy and public-sector blockchain adoption, describing the selection of CCIP as reflecting a broader need among governments and institutions for secure and standardised infrastructure to move digital assets across blockchain networks at scale.
Broader implications
The Commission said the migration to Chainlink CCIP is intended to serve as a reference point for other states, government entities, financial institutions, payment companies, asset managers, and stablecoin issuers seeking to deploy regulated digital assets across blockchain networks while meeting institutional standards for operational security.
