Wyoming Stable Token Commission cites LayerZero security failures in switch to Chainlink CCIP

The Wyoming Stable Token Commission has moved its state issued FRNT stable token away from LayerZero and onto Chainlink CCIP after a security review found what the agency described as repeated operational failures at LayerZero Labs.

According to the Commission, its review uncovered additional concerns around access controls, private key management and incident disclosures. 

It said LayerZero Labs failed to transfer a production authorization to the Commission and did not maintain proper control of a critical private key tied to a live FRNT deployment.

The Commission ultimately concluded that LayerZero no longer met the security standards required for infrastructure supporting a state backed digital asset. 

It said the protocol placed too much responsibility on individual developers to configure their own security and could leave deployments dependent on a single verifier or a small verifier set.

FRNT is the first state issued US dollar backed stable token in the United States and is deployed across eight major blockchain networks. The Commission said the bridge used to move the asset between networks represents a critical part of the financial infrastructure supporting the token.

Following its review, the agency selected Chainlink Cross Chain Interoperability Protocol as FRNT’s exclusive cross chain infrastructure.

The Commission said Chainlink CCIP was the only solution evaluated that met its institutional security requirements, citing its decentralized network of independent node operators, rate limits, external audits and direct issuer control over token contracts and implementation logic.

The agency also highlighted CCIP’s use of Chainlink’s decentralized oracle infrastructure, which it said has remained operational through major market disruptions and cloud outages.

The decision means FRNT will fully migrate away from LayerZero as Wyoming seeks to establish stricter security standards for government backed digital assets.

The assessment was presented by the Wyoming Stable Token Commission’s Chief Information Security Officer as part of the agency’s effort to explain the security criteria it expects cross chain infrastructure providers to meet.