Wyoming Launches Testing for State-Backed Stablecoin WYST

Wyoming has embarked on a significant journey to establish itself as a leader in blockchain policy within the United States. The state has initiated the testing phase of its own government-backed stablecoin, the Wyoming Stable Token (WYST), across several prominent blockchain networks, including Ethereum, Solana, and Avalanche. This testing phase is a crucial step towards the planned launch of WYST in July 2025.

The WYST token will be issued under the authority of the Wyoming Stable Token Commission and will be built using LayerZero’s Omnichain Fungible Token (OFT) standard. This standard enables seamless movement of tokens between different blockchains without the need for centralized bridges, enhancing security and efficiency. The token will be fully backed by a combination of cash and US Treasury securities, with reserves exceeding the total number of tokens issued. This overcollateralization model is designed to maintain price stability and build public trust, distinguishing WYST from algorithmic stablecoins that have faced failures in the past.

Interest earned on these reserves will be directed to Wyoming’s school foundation fund, creating a direct benefit to public services through stablecoin adoption. The initiative is managed by the Wyoming Stable Token Commission, established after the passage of the Wyoming Stable Token Act in March 2023. This marks a unique instance of a US state pursuing its own stablecoin project under direct legislative authority.

The commission has collaborated with LayerZero to develop WYST using the OFT standard. This framework allows for secure cross-chain transfers without relying on third-party bridges, which are often vulnerable to exploits. LayerZero’s protocol uses decentralized oracles and relayers to enable cross-chain communication, reducing the risk of hacks. WYST has already been successfully transferred between Ethereum and Avalanche during testnet demonstrations using Stargate, a LayerZero-enabled bridge. While Stargate was used for initial testing, WYST will be compatible with any interface that supports LayerZero’s OFT standard.

These developments were announced during the DC Blockchain Summit, where Wyoming Governor Mark Gordon and Stable Token Commission Executive Director Anthony Apollo confirmed that the token had entered its testing phase. The state aims to use these trials to ensure smart contracts function properly, identify vulnerabilities, and confirm that cross-chain mechanics are stable ahead of the launch window.

WYST is being deployed on multiple blockchain testnets to prepare for a wide-scale launch. The inclusion of Ethereum, Solana, Avalanche, and others allows Wyoming to ensure compatibility with the most widely used decentralized finance platforms. The testnet version of the token does not carry any real-world value but replicates the behavior of the live version. Each blockchain brings different capabilities to the table. Ethereum provides robust security and institutional adoption, Solana offers faster transaction speeds and lower fees, while Avalanche provides high scalability and eco-friendliness. By deploying WYST across these networks, the state is aiming to build a flexible, future-ready digital asset. This approach positions WYST as a uniquely interoperable state-issued stablecoin, capable of serving multiple decentralized ecosystems. It also reflects Wyoming’s broader strategy of developing comprehensive blockchain legislation and infrastructure, attracting both startups and institutional players to the state.

With initial testing underway, the next few months will be focused on refining WYST’s smart contracts, finalizing risk management protocols, and expanding test coverage. If these elements are completed on schedule, the token could see a full-scale launch by July 2025. Wyoming’s move into stablecoins follows years of progressive blockchain legislation, creating a favorable regulatory environment for decentralized technologies. WYST could become the first government-issued stablecoin of its kind in the US, further solidifying Wyoming’s position as a leader in blockchain innovation.