Wyoming moved its state stablecoin off LayerZero to Chainlink's CCIP

Wyoming's Stable Token Commission has completed the migration of its Frontier Stable Token (FRNT) from LayerZero to @chainlink's Cross-Chain Interoperability Protocol (CCIP), according to CoinDesk. The LayerZero version of the token will be retired following a security review, with CCIP now serving as the token's exclusive cross-chain infrastructure under a multi-year contract.

From Pioneer Launch to Infrastructure Overhaul

FRNT went live in January across seven blockchain networks using LayerZero's Omnichain Fungible Token (OFT) issuance standard, becoming the first stablecoin issued by a U.S. government entity. The token carries a market cap below $1 million, making it modest in scale but significant as the first state-backed stablecoin in the United States. Its reserves are managed by Franklin Templeton and backed by U.S. dollars and short-duration Treasuries at a legally mandated 102% reserve ratio.

The decision to switch providers follows a security review, and it places Wyoming alongside a growing list of protocols that have moved away from LayerZero in recent months.

A Broader Exodus From LayerZero

The migration wave accelerated after the largest DeFi exploit of 2026. An attacker drained 116,500 rsETH from Kelp DAO's LayerZero-powered bridge, worth roughly $292 million. The attack compromised off-chain infrastructure and exploited a single-point-of-failure verification network configured as a 1-of-1 DVN setup.

The fallout has been substantial. Announced LayerZero-to-Chainlink migrations now total close to $15 billion, according to CoinDesk. High-profile names including Kraken, BitGo, Mantle, Solv Protocol, and Re have all announced similar infrastructure switches. BitGo's decision to move $7.3 billion of WBTC to CCIP and make it the default for all future assets it issues was the largest single move yet.

Wyoming's switch, though modest in size, carries weight as a government-issued token choosing @chainlink over the incumbent. It adds institutional and reputational pressure on LayerZero and signals that even sovereign-backed issuers are prioritising infrastructure security over existing vendor relationships.

Sources:
CoinDesk: Wyoming joins $15 billion LayerZero exodus with state stablecoin move
CoinDesk: BitGo's WBTC move pushes LayerZero-to-Chainlink tally near $15 billion
CoinDesk: Kelp DAO exploited for $292 million, 2026's biggest crypto exploit