Wyoming Launches State-issued Stablecoin Testing Across Multiple Blockchains

The State of Wyoming has initiated testing for its state-issued stablecoin, the Wyoming Stable Token (WYST), across multiple blockchain networks. This move positions Wyoming as a pioneer in the issuance of a fiat-backed and fully reserved stablecoin by a US public entity. The announcement was made on March 26, with further details shared during a fireside chat at the DC Blockchain Summit by Wyoming Governor Mark Gordon and Executive Director Anthony Apollo.

Governor Gordon and Apollo highlighted Wyoming's leadership in blockchain regulation and digital asset innovation. WYST has been deployed on testnets for Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base, using valueless tokens for initial testing. The stablecoin 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 Wyoming’s School Foundation Fund, reinforcing a broader state-level utility for the initiative.

Governor Gordon emphasized Wyoming's forward-thinking approach to blockchain and digital asset legislation, positioning the state as a model for other states and the federal government. 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, expressed honor in being chosen by Wyoming as the token issuance partner for WYST, noting that the move signals the direction of finance. Governor Gordon stressed the importance of maintaining transparency and security, ensuring that the stablecoin architecture will be auditable and the underlying reserves independently verifiable.

Director Apollo outlined the Commission's advancement in 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. Future holders of WYST will 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, accessible to Wyoming residents and domiciled entities, who can register as alpha testers through the Commission’s 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.

Wyoming's 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. This move by Wyoming is significant as it sets a precedent for other states and the federal government in embracing digital asset innovation and blockchain technology.