- Wyoming has partnered with LayerZero to develop WYST, ensuring cross-chain interoperability without centralized bridges.
- WYST will be fully backed by cash and U.S. Treasury securities, with interest from reserves benefiting the education system.
- If testing goes as planned, the stablecoin is expected to launch by July 2025, setting an example for other states exploring digital currencies.
It is setting history as the first U.S. state to introduce its own stablecoin, named WYST.
Governor Mark Gordon and the executive director of the Stable Token Commission, Anthony Apollo, on March 26 stated that WYST had gone into testing.
The stablecoin is currently being launched on testnets, such as Avalanche, Solana, and Ethereum, in order to validate the system properly before it’s released.
The commission has partnered with LayerZero, a leading interoperability protocol, to develop and circulate WYST. Leveraging LayerZero’s Omnichain Fungible Token standard, aims to make WYST cross-chain interoperable on multiple blockchains without central bridges, reducing security risks and operational efficiency.
A recent test transaction confirmed WYST is able to transfer between Ethereum and Avalanche seamlessly via Stargate, a LayerZero-supported bridge.
Wyoming’s Vision for Blockchain Adoption
Governor Gordon highlighted its leadership in adopting blockchain, declaring that the state’s forward-thinking approach to digital asset regulation is a model for other states and even the federal government.
The state has been gearing up for this project since it enacted its Stable Token Act in March 2023. With lawmakers actively drafting its framework, the commission has been perfecting WYST’s smart contracts and risk management policies to ensure a seamless launch.
In order to ensure stability, WYST will be completely collateralized by cash and U.S. Treasury securities. In contrast to algorithmic stablecoins, which have struggled in the past, Their stablecoin will be overcollateralized, with its reserves always being higher than the tokens issued.
Interest on these reserves will go towards the school foundation fund, so that the project will profit the state’s education system.
Progress and Expected Launch
The project has been underway for years, with the Wyoming legislature initially introducing the stablecoin back in February 2022.
The Wyoming Stable Token Act. Source: Legislature
The legislation was signed into effect in March 2023, which granted the state treasury the power to create a group consisting of accountants, auditors, and blockchain specialists to regulate WYST’s issuance and administration.
Ever since, the Wyoming Stable Token Commission has been engaged in creating the infrastructure that would facilitate the launch of the stablecoin.
Wyoming’s support for financial innovation has been found in its general approach to digital assets. Wyoming has been one of the most outspoken crypto-supportive legislation proponents and can claim to have Senator Cynthia Lummis as a member who is pro-crypto.
Governor Gordon, in August 2024, had been aiming to go live with WYST in Q1 2025, supported by short-term U.S. Treasury Bills and repurchase agreements. He also derided the Federal Reserve, calling it a hindrance to financial innovation.
Moving forward, the stablecoin is targeted to go live by July of 2025 if testing runs according to plan. The commission will keep on refining WYST’s technical structure to guarantee safety, stability, and adherence to regulatory requirements.
With Wyoming’s lead, there is a high chance other states will follow the same path towards investigating state-issued digital currencies.
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