The U.S. state of Wyoming is introducing Chainlink’s reserve verification system for its government-issued stable token, Frontier Stable Token, known as FRNT.

Cointelegraph reported on Sept. 2 that the Wyoming Stable Token Commission decided to adopt Chainlink’s proof-of-reserves function and disclose on-chain data on FRNT reserves and token supply.

The key to the integration is narrowing the disclosure cycle. Wyoming already publishes daily reserve confirmation material for FRNT. It plans to combine Chainlink infrastructure with independent checks by The Network Firm so it can verify reserve changes between reporting times at a near-real-time level.

It is also reviewing additional issuance controls. If it introduces Chainlink’s Secure Mint function, it would be able to issue new tokens only when verified reserves are equal to or greater than FRNT’s total supply. The aim is to structurally prevent the risk of additional issuance when reserves are insufficient.

FRNT is a stable token launched in January. It is backed by U.S. dollars and short-term U.S. Treasuries, and interest income generated from the reserves is deposited into Wyoming’s school foundation program. The U.S. GENIUS bill also requires monthly disclosure of reserve composition and the amount of stablecoins in circulation, so Wyoming is bolstering its on-chain verification system in addition to daily confirmation material.

The move comes about 2 weeks after Wyoming fully migrated FRNT’s cross-chain infrastructure from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol. As a result, the Cross-Chain Interoperability Protocol, or CCIP, became FRNT’s dedicated cross-chain infrastructure. The shift continues a trend of reorienting reserve verification and cross-chain transfers around Chainlink after issuance.

Chainlink has recently been expanding its use across the tokenised financial market. Most recently, it began providing price data for Coinbase’s B20 tokenised shares. The product, launched on Base in August, is based on shares including Apple, Nvidia, Meta and Alphabet, and the price information is used for lending, trading and collateral valuation.

Links to traditional financial infrastructure are also expanding. The Depository Trust & Clearing Corporation, or DTCC, said in May it plans to integrate Chainlink technology into a platform that manages tokenised collateral around the clock. Fidelity International also launched a tokenised liquidity fund in the same month using Chainlink and Sygnum infrastructure, and JPMorgan provided daily net asset value data for pricing.

Markets appear to be raising expectations for the Chainlink ecosystem amid the expansion. LINK rose more than 34 percent over the past month and traded around $11.07 on Sept. 2. Wyoming’s integration is expected to be recorded as an example of linking reserve transparency and issuance controls on-chain for stablecoins issued by the public sector.