The state of Wyoming is taking significant steps toward introducing a stablecoin later this year, potentially becoming the first fully reserved and fiat-backed token released by a public authority in the United States, according to state officials speaking at the DC Blockchain Summit on Wednesday.
The Wyoming Stable Token (WYST) is presently undergoing testing across various networks including Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Coinbase’s Base testnets, as highlighted in a recent press announcement. To aid in this deployment across multiple networks, the state is collaborating with LayerZero, a firm specializing in blockchain interoperability, according to Wyoming Stable Token Commission Executive Director Anthony Apollo, who spoke at the event.
During the summit, both Governor Mark Gordon and Apollo indicated that the testing phase for the token will extend through the second quarter, with a full launch anticipated in July.
“The upcoming phase of testing and the customization of smart contracts is a crucial step in delivering an optimal product for Wyoming and for stable token holders,” commented Anthony Apollo. “Once operational, WYST will allow holders to execute dollar-denominated transactions of any amount, globally, almost instantaneously, and with fees significantly lower than traditional ACH or wire transfers.”
Stablecoins represent one of the fastest-growing areas in cryptocurrency, now boasting a market capitalization of nearly $230 billion. These blockchain-based tokens are pegged to a stable value, mostly the U.S. dollar, and are increasingly favored for transactions and remittances. Interest in this asset class has surged in recent months, especially as stablecoin regulation has moved to the forefront of the agenda under the Trump administration, with legislative efforts making headway in both the House of Representatives and the Senate.
Read more: U.S. House Stablecoin Bill Set to Be Released, Lawmaker Leading Crypto Panel States
Major global banks and digital asset firms are eager to seize this opportunity. Notably, Fidelity Investments, a leading asset management firm, is reportedly working on a stablecoin, and World Liberty Financial (WLFI), a decentralized finance protocol supported by former President Donald Trump, has confirmed its own plans for a stablecoin.