The State of Wyoming has officially initiated testing on its state-issued stablecoin, the Wyoming Stable Token (WYST), across various blockchain networks. This development could mark the first instance of a fiat-backed and fully reserved stablecoin being issued by a public entity in the United States.
The announcement took place on March 26, with Wyoming officials revealing further details during a fireside chat at the DC Blockchain Summit.
Wyoming’s Governor and Chairman of the Stable Token Commission, Mark Gordon, alongside Executive Director Anthony Apollo, discussed the state’s pioneering role in blockchain regulation and innovation in digital assets.
Apollo confirmed that WYST has been implemented on testnets for Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base, utilizing valueless tokens for preliminary testing.
The WYST is structured to meet legal requirements mandating over-collateralization through cash and U.S. Treasuries. The interest accrued from these reserves will be allocated to Wyoming’s School Foundation Fund, further enhancing the initiative’s statewide utility.
Governor Gordon stated:
“Our progressive stance on blockchain and digital asset legislation has established Wyoming as a benchmark for other states and the federal government alike.”
Testing and technological framework
LayerZero Labs, chosen as the token issuance partner via a competitive RFP process, is facilitating the technical implementation of WYST through its Omnichain Fungible Token (OFT) standard.
The OFT framework enables native issuance and bridging across multiple chains. Initial demonstrations successfully conducted a cross-chain transaction between Ethereum and Avalanche testnets using Stargate, a third-party bridge powered by LayerZero.
Simon Baksys, Vice President of Business Development at LayerZero Labs, expressed that the organization feels “honored” to be selected by Wyoming as the issuance partner for WYST.
He added:
“There’s no clearer signal of where finance is heading than a U.S. state putting the dollar onchain.”
The expectations for WYST’s multichain features were initially set for a later development phase.
Governor Gordon highlighted the necessity of ensuring transparency and security, noting that the stablecoin’s architecture will be subject to audits and that the underlying reserves will be independently verified.
Governance and future roadmap
As outlined by Director Apollo, the Commission is progressing with its vendor engagement efforts to create a comprehensive operational and compliance framework.
This includes establishing a reserves management function, internal controls, and oversight protocols. Testing will extend through the second quarter, with the Commission aiming for a public launch as early as July 2025.
Apollo pointed out that future holders of WYST would have the ability to transfer dollar-denominated value globally, in any amount, while incurring significantly lower transaction fees compared to traditional systems like ACH or wire transfers.
The goal is to turn the token into a digital public resource. It will be available to residents of Wyoming and entities domiciled there, who can register as alpha testers via the Commission’s website.
The Commission has made the smart contract addresses for the WYST test deployments publicly available, allowing for external review and third-party integrations during the testing phase. This open-access strategy promotes developer experimentation and user feedback while ensuring that the system is open to public examination prior to launch.
Wyoming’s foray into state-level stablecoin issuance occurs amid wider national discussions regarding regulatory frameworks for digital dollars and stablecoins.
Recently, the House updated its STABLE Act legislation to provide clearer guidelines within its proposed stablecoin regulatory framework.