tl;dr
The State of Wyoming has announced the testing of its state-issued stablecoin, Wyoming Stable Token (WYST), potentially the first fiat-backed stablecoin issued by a US public entity. WYST is designed to comply with statutory requirements, with interest generated from its reserves deposited into the ...
The State of Wyoming has introduced the first state-backed stablecoin in the US, named Wyoming Stable Token (WYST). This stablecoin is backed by cash and US Treasuries and is being tested on multiple blockchain networks. The public launch is expected in July 2025, with the aim of generating interest for Wyoming’s School Foundation Fund. The Wyoming Stable Token Commission is working on establishing governance and compliance frameworks to facilitate global transmission of dollar-denominated value with lower transaction fees.
Wyoming’s Stable Token Commission is ensuring that WYST complies with statutory requirements, with the interest generated from its reserves deposited into the Wyoming School Foundation Fund. LayerZero Labs is the token issuance partner, responsible for the technical deployment of WYST. The stablecoin's multichain capabilities are currently being tested, and the public launch is targeted for July 2025. Wyoming residents and entities have the opportunity to register as alpha testers, and the smart contract addresses for WYST test deployments are publicly available for review and third-party integrations. This initiative aligns with ongoing national discussions concerning regulatory frameworks for digital dollars and stablecoins.
During the announcement made at the DC Blockchain Summit, Wyoming Governor and Stable Token Commission Chairman Mark Gordon, along with Executive Director Anthony Apollo, discussed the state’s leadership in blockchain regulation and digital asset innovation. WYST has been deployed on several blockchain networks for testing, with the aim of complying with statutory requirements mandating over-collateralization using cash and US Treasuries. Interest generated from these reserves will be deposited into Wyoming’s School Foundation Fund, supporting a broader state-level utility for the initiative.
LayerZero Labs, the token issuance partner selected through a competitive RFP process, is supporting the technical deployment of WYST through its Omnichain Fungible Token (OFT) Standard, which allows for native issuance and bridging across multiple chains. The stablecoin's multichain capabilities were initially expected to be introduced later in development. Governor Gordon emphasized the importance of transparency and security, ensuring that the stablecoin architecture will be auditable and the underlying reserves independently verifiable.
The Stable Token Commission is advancing its vendor engagement process to establish a complete operational and compliance framework, including 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. Future holders of WYST would be able to transmit dollar-denominated value globally, at any amount, with significantly lower transaction fees than traditional systems. Wyoming residents and domiciled entities can register as alpha testers through the Commission’s website. The smart contract addresses for WYST test deployments are publicly available, allowing for public review and third-party integrations during testing.
Wyoming’s entry into state-level stablecoin issuance comes amid broader national discussions on regulatory frameworks for digital dollars and stablecoins, as evidenced by the recent updates to the STABLE Act legislation by the House to include clearer guidelines in its proposed stablecoin regulatory framework.