Key highlights:

  • Wyoming moved its stablecoin from LayerZero to Chainlink
  • Chainlink CCIP is now the token's only cross-chain system
  • The switch comes after a security review

The Wyoming Stable Token Commission shared that it had completed the migration of FRNT, the state's Frontier Stable Token, from LayerZero to Chainlink's Cross-Chain Interoperability Protocol, CCIP.  The commission would also close the old LayerZero setup entirely and told token holders that they do not need to take any action during the switch.

Why Wyoming made the move

The change came after a security review was done to check how LayerZero handled disclosures and operational controls. Commission Executive Director Anthony Apollo said the review found risks in these areas:

"The Commission proactively conducted a security review and identified concerns regarding LayerZero’s disclosure practices and operational security. Following the review, the Commission decided to adopt Chainlink CCIP as it’s the only cross-chain infrastructure meeting stringent security and reliability requirements across the board.”

Wyoming also mentioned some features as reasons for the switch. These include CCIP’s monitoring tools, built-in risk checks, and layered validation process. Chainlink’s system ensures that each transaction on the network is checked by at least 16 node operators, after which it then undergoes a security certification. 

As shared in the press release, CCIP will be the token's exclusive cross-chain system for the years to come. Wyoming also reiterated it will phase out the LayerZero version entirely.

A small token with serious attention

FRNT has a total value below $1 million, which makes it a small-cap stablecoin. However, the migration is making the rounds because Wyoming is a public entity. This is the first known case of a U.S. government body publicly changing its blockchain infrastructure due to security concerns. 

Meanwhile, the token is still available on eight blockchains, including Ethereum, Solana, Base, and Avalanche, among others.

The token is the first reserved stablecoin issued by a U.S. public entity that is backed by cash and short-term government bonds. The income generated from those reserves currently funds the state's School Foundation Program, which supports public education.

LINK gains traction amid project shifts to CCIP

Wyoming's move adds to the list of projects already moving their cross-chain system to Chainlink. That trend picked up after $292 million worth of tokens were stolen from a bridge built on LayerZero technology. 

LayerZero said at the time the breach was due to a compromised server and a validation setup used by that project. Since the incident, LayerZero stopped using that type of validation setup.

 A LayerZero spokesperson said the company respected Wyoming's decision and promised an easy transition. 

“We were proud to power the first state-issued stablecoin in U.S. history,” they said. “FRNT holders are unaffected, and we’re ensuring a smooth transition.”

It is also worth noting that the total value linked to the recent shifts from LayerZero to Chainlink's system is close to $15 billion. This suggests a high demand for Chainlink’s infrastructure.

Chainlink's LINK token has benefited from this trend. The coin is up almost 4% as of press time and 10% over the past week.