Wyoming Initiates State-Issued Stablecoin Testing Across Blockchain Networks

By: Eliza Bennet

Wyoming has made strides in the digital financial landscape by testing its state-issued stablecoin, known as the Wyoming Stable Token (WYST), across various blockchain platforms. Officially announced on March 26, 2023, at the DC Blockchain Summit, this initiative marks a significant step as it potentially represents the first fiat-backed, fully reserved stablecoin introduced by a U.S. public entity. During a fireside chat, Wyoming Governor Mark Gordon and Executive Director Anthony Apollo elucidated the state’s pioneering status in blockchain regulation and digital asset innovation.

WYST has been deployed for testing on multiple blockchain testnets such as Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base, employing valueless tokens for initial operations. The stablecoin is structured to comply with stringent statutory requirements, including over-collateralization using cash and U.S. Treasuries. The generated interest from these reserves will bolster Wyoming’s School Foundation Fund, highlighting the broader state-level utility of this digital initiative. The stablecoin’s architecture promises transparency and security, with full auditability and independently verifiable reserves.

The technological underpinnings of WYST are supported by LayerZero Labs, selected as a token issuance partner through a competitive process. The Omnichain Fungible Token (OFT) Standard developed by LayerZero facilitates native issuance and multi-chain operations. Original tests have successfully executed cross-chain transactions between the Ethereum and Avalanche testnets utilizing Stargate, a LayerZero bridge. This multichain capability sets a precedent for future operations and deployments.

Governor Gordon emphasized Wyoming’s leadership role as a model for digital asset legislation, potentially offering valuable insights for other states and federal frameworks. Looking ahead, the Commission aims to establish a comprehensive operational and compliance structure, encompassing reserves management and oversight protocols. The public launch of WYST is anticipated as early as July 2025, with testing continuing in the interim. Once operational, WYST could transmit dollar-denominated values globally at reduced transaction costs, fostering a digital public good accessible to Wyoming residents and businesses.