Wyoming Launches Stablecoin WYST Backed by 102% Capitalization

Wyoming is set to launch its own stablecoin, WYST, in July, partnering with LayerZero for issuance. The stablecoin will be backed by cash, US Treasury bonds, and repurchase agreements, ensuring a 102% capitalization requirement to maintain its peg to the US dollar. The state is considering nine potential blockchains to host WYST, including Solana, Ethereum, and Polygon.

Governor Mark Gordon announced this initiative at the DC Blockchain Summit, highlighting Wyoming's proactive approach to integrating blockchain technology into its financial infrastructure. This move is separate from the state's previous Bitcoin reserve plan, which faced opposition from fiscal conservatives. The interest accrued from the assets backing WYST is intended to fund public services such as education and infrastructure.

Wyoming's fiscal conservatives had previously opposed using state funds to buy Bitcoin, but the stablecoin project is seen as a more conservative and regulated approach. The state has significant investments, including US Treasury bonds, which could be directed towards the WYST project. A successful small-scale experiment with WYST could pave the way for larger commitments and further integration of blockchain technology in Wyoming's financial ecosystem.

This development underscores Wyoming's commitment to innovation in the financial sector, positioning the state as a leader in the adoption of stablecoins and blockchain technology. The launch of WYST is expected to provide valuable insights into the potential of stablecoins in public finance and could serve as a model for other states considering similar initiatives.