Wyoming to Launch First State-Issued Stablecoin in 2025

Wyoming is on the verge of making history by launching the first state-issued stablecoin in the United States, with an anticipated launch date of July 2025. The Wyoming Stable Token, or WYST, is set to be backed by a combination of cash, U.S. Treasury securities, and repurchase agreements, ensuring its value remains stable and pegged to the U.S. dollar. This groundbreaking initiative is powered by LayerZero, a blockchain interoperability protocol, and aims to facilitate seamless, low-cost transactions across multiple blockchain networks, including Ethereum, Solana, Avalanche, and several Ethereum scaling solutions.

Governor Mark Gordon announced the impending launch during the DC Blockchain Summit, emphasizing Wyoming's pioneering role in blockchain and digital asset legislation. The stablecoin has been in development since a state bill was proposed in February 2022 and is currently undergoing testing across multiple blockchain testnets. This testing phase is crucial for refining the smart contracts and ensuring the stability and security of the token.

The WYST stablecoin is designed to offer several benefits. It will require over-collateralization of the assets backing the token to mitigate the risk of de-pegging from the U.S. dollar. Additionally, the interest generated from the Treasury securities backing the token will be directed into the state’s school foundation fund, providing a financial boost to education. The Wyoming Stable Token Commission, established by the Wyoming Stable Token Act passed in March 2023, is responsible for the development, deployment, and management of WYST. The Commission is actively engaging with vendors to ensure the stablecoin aligns with state laws and fiscal responsibility.

Once launched, WYST will enable users to transmit dollar-denominated transactions of any value, nearly instantly, and with significantly reduced fees compared to traditional payment methods. The launch of WYST is part of a broader trend in the cryptocurrency space, where stablecoins are gaining attention due to their potential to provide stability and utility in digital transactions. Wyoming's initiative is particularly noteworthy as it represents the first fiat-backed and fully-reserved stable token issued by a public entity in the United States. This move positions Wyoming as a leader in digital asset innovation and sets a precedent for other states and entities considering similar initiatives.

Wyoming's choice of LayerZero's Omnichain Fungible Token standard is strategic, as it allows WYST to function seamlessly across multiple blockchains. This lowers security risks by enabling users to move WYST between networks without depending on centralized bridges. A recent test transaction demonstrated WYST moving between Ethereum and Avalanche using Stargate, a LayerZero-powered bridge. This interoperability is a key feature that sets WYST apart from other stablecoins.

Governor Gordon's statement underscores Wyoming's commitment to financial innovation and its role as a model for other states and the federal government. The state's forward-thinking approach to blockchain and digital asset legislation has positioned it as a leader in this rapidly evolving field. The launch of WYST is expected to further solidify Wyoming's status as a hub for digital asset innovation, attracting more businesses and investors to the region.