Wyoming unveils first state-issued stablecoin called WYST, set to launch in July
The State of Wyoming has officially begun testing its state-issued stablecoin, called the Wyoming Stable Token (WYST), across several blockchain networks. This is potentially the first fiat-backed and fully reserved stablecoin issued by a US public entity.
The announcement was made on March 26, with Wyoming officials sharing more details during a fireside chat at the DC Blockchain Summit.
Wyoming Governor and Stable Token Commission Chairman Mark Gordon and Executive Director Anthony Apollo discussed the states leadership in blockchain regulation and digital asset innovation.
Apollo confirmed that WYST has been deployed on testnets for Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base, using valueless tokens for initial testing.
WYST is designed to comply with statutory requirements that mandate over-collateralization using cash and US Treasuries. Interest generated from these reserves will be deposited into Wyomings School Foundation Fund, reinforcing a broader state-level utility for the initiative.
Governor Gordon said:
Our forward-thinking approach to blockchain and digital asset legislation has positioned Wyoming as a model for not only other states, but the federal government as well.
Testing and technology infrastructure
LayerZero Labs, selected as the token issuance partner through a competitive RFP process, is supporting the technical deployment of WYST through its Omnichain Fungible Token (OFT) Standard.
The OFT architecture allows for native issuance and bridging across multiple chains. Initial demonstrations executed a cross-chain transaction between the Ethereum and Avalanche testnets using Stargate, a LayerZero-powered third-party bridge.
Simon Baksys, Vice President of Business Development at LayerZero Labs, said that the entity is honored to be chosen by Wyoming as the token issuance partner for WYST.
He added:
Theres no clearer signal of where finance is heading than a U.S. state putting the dollar onchain.
WYSTs multichain capabilities were initially expected to be introduced later in development.
Governor Gordon emphasized the importance of maintaining transparency and security, noting that the stablecoin architecture will be auditable and the underlying reserves independently verifiable.
Governance and roadmap
As Director Apollo outlined, the Commission is advancing its vendor engagement process to establish a complete operational and compliance framework.
This includes implementing a reserves management function, internal controls, and oversight protocols. Testing will continue through the second quarter, with the Commission targeting a public launch as early as July 2025.
Apollo noted that future holders of WYST would be able to transmit dollar-denominated value globally, at any amount, with significantly lower transaction fees than traditional systems such as ACH or wire transfers.
The intention is to make the token a digital public good. It will be accessible to Wyoming residents and domiciled entities, who can register as alpha testers through the Commissions website.
The Commission has published the smart contract addresses for the WYST test deployments, enabling public review and third-party integrations during testing. This open-access approach supports developer experimentation and user feedback while ensuring the system is subject to public scrutiny before launch.
Wyomings entry into state-level stablecoin issuance comes amid broader national discussions on regulatory frameworks for digital dollars and stablecoins.
The House recently updated its STABLE Act legislation to include clearer guidelines in its proposed stablecoin regulatory framework.
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Text source: CryptoSlate
