State-Backed Stablecoins Arrive: Wyomings WYST Nears Deployment

Wyoming is set to introduce the first fiat-backed, fully reserved stablecoin issued by a U.S. public entity with the Wyoming Stable Token (WYST), which is currently undergoing testing across multiple blockchain networks, with a planned launch in July 2025.

Multi-Chain Testing and Development

Wyoming Governor Mark Gordon has said the states proposed stablecoin might be ready to launch by July, with the Wyoming Stable Token Commission announcing interoperability protocol LayerZero as a partner for the token launch.

According to a press release, WYST is being tested on Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Coinbase's Base testnets. The Wyoming Stable Token Commission has partnered with LayerZero, a blockchain interoperability firm, to facilitate cross-chain deployment.

Anthony Apollo, Executive Director of the Wyoming Stable Token Commission, confirmed the collaboration, stating:

The Stable Token Commission has formally engaged LayerZero as our token development and distribution partner, and we have stable tokens Wyoming stable tokens on several test networks.

Legislative and Regulatory Foundation

Wyoming has long been at the forefront of crypto-friendly regulation. In February 2022, state lawmakers introduced the "Wyoming Stable Token Act," establishing a state-issued stablecoin pegged to the U.S. dollar and redeemable for fiat. The bill was signed into law in March 2023, leading to the formation of a dedicated team within the state treasury to oversee issuance and management.

Since then, Wyoming has been preparing for the stablecoins deployment by staffing the Stable Token Commission with financial and technical experts. Governor Gordon, a vocal advocate for blockchain innovation, previously indicated that WYST would be backed by short-term U.S. Treasury Bills and repurchase agreements to ensure stability.

Governor and Officials Push for Transparency

Governor Gordon recently praised Wyoming's efficiency in embracing blockchain technology at the DC Blockchain Summit on March 26. He emphasized the state's commitment to digital asset innovation, stating that the stablecoin launch aligns with Wyoming's broader vision for financial modernization.

Anthony Apollo also advocated for greater government transparency, reportedly suggesting that Wyomings public budget should be recorded onchain to enhance accountability and efficiency.

Stablecoins Gain National Attention

Stablecoins have seen significant growth, with the sector now valued at nearly $230 billion. These blockchain-based tokens, primarily pegged to the U.S. dollar, have gained popularity for payments and remittances. Federal lawmakers have also taken a greater interest in stablecoin regulation, with related bills advancing in both the House of Representatives and the Senate.

Wyomings push to launch WYST marks a significant step in the evolution of state-backed digital currencies, potentially setting a precedent for other U.S. states exploring blockchain-based financial solutions.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Text source: Crypto Daily™

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