Wyoming Sets Cross-Chain Security Bar LayerZero Failed

Wyoming published its security bar for cross-chain bridges, and LayerZero did not clear it

The Wyoming Stable Token Commission has moved its state-issued FRNT stable token onto Chainlink CCIP as its exclusive cross-chain infrastructure, after a security review found what the agency described as repeated operational failures at LayerZero Labs, the Commission announced in a post on X.

The review was presented by the Commission’s Chief Information Security Officer and had a second purpose beyond the migration: to spell out the security criteria Wyoming expects from any provider running cross-chain infrastructure for a government-backed asset. The agency said it conducted a comprehensive review of the cross-chain market, then evaluated LayerZero against Chainlink CCIP and other alternatives across six dimensions.

The findings against LayerZero were specific. The Commission said its review uncovered 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 also criticized the protocol’s model of leaving security configuration to individual developers, which it said could leave a deployment dependent on a single verifier or a small verifier set. LayerZero Labs has not responded to the findings.

The Commission’s verdict was that LayerZero no longer met the security standards required for infrastructure supporting a state-backed digital asset. FRNT will now fully migrate away from LayerZero as Wyoming works toward stricter security standards for government-backed digital assets.

Chainlink CCIP cleared the same bar. The Commission said it was the only solution evaluated that met its institutional security requirements, pointing to its decentralized network of independent node operators, rate limits, external audits and direct issuer control over token contracts. The agency added that Chainlink’s oracle infrastructure has stayed operational through major market disruptions and cloud outages.

FRNT is the first state-issued US dollar-backed stable token in the United States and runs across eight blockchain networks. Other issuers and governments now have a published, worked example of how a state body vets cross-chain vendors before trusting them with public money.