- Wyoming is set to introduce the WYST stablecoin in July, positioning itself as the first US state to create a digital token.
- Fidelity Investments is said to be in the process of testing its own stablecoin as more companies rush to develop digital assets.
- US lawmakers have unveiled the complete text of the STABLE Act, with markup scheduled for next week.
Governor Mark Gordon has announced that Wyoming is entering the stablecoin arena, planning to roll out the WYST, a token backed by the US Dollar, in July. The WYST will be entirely secured by US Treasuries, cash, and repurchase agreements, requiring a capitalization of at least 102%.
Wyoming to Launch Dollar-Backed Token Amid Legislative Push for Stablecoin Regulation
At the DC Blockchain Summit, Wyoming Governor Mark Gordon disclosed that the state intends to launch the Wyoming Stablecoin Token (WYST) in July.
Anthony Apollo, the executive director of the Stable Token Commission, indicated that the state has officially partnered with interoperability protocol LayerZero for the token’s development and distribution.
Apollo added that WYST will be tested on seven different blockchains, including Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base, making Wyoming the inaugural state to introduce a fiat-backed stablecoin in the United States.
The WYST will be entirely supported by US Treasuries, cash, and repurchase agreements, with a capitalization requirement of at least 102%, meaning that for every WYST token, the state will maintain approximately $1.02 in reserves.
Apollo emphasized that future holders of WYST would have the capability to transfer dollar-denominated value across the globe, with transaction costs lower than those of conventional systems like ACH or wire transfers.
“Upon launch, WYST will enable holders to execute dollar-denominated transactions of any amount, anywhere in the world, almost instantly, and at significantly reduced fees compared to traditional ACH or wires,” stated Apollo.
This initiative from Wyoming contributes to the growing enthusiasm for stablecoins among both corporate entities and government agencies in recent weeks.
Asset management firm Fidelity Investments is also reportedly experimenting with its own stablecoin, aimed to function as a form of digital currency for the company. While there are no immediate plans for its release, the exploration of stable tokens may be linked to the firm’s upcoming tokenized fund, according to reports.
Moreover, US lawmakers are working to create clearer regulations surrounding cryptocurrency, particularly focusing on stablecoins.
This week, members of the House of Representatives shared the text of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. A markup session is set for next week, during which committee members will vote on the bill’s progression.
The STABLE Act is one of two stablecoin bills introduced by lawmakers this month. Additionally, the Senate Banking Committee recently greenlighted the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, proposed by Senator Bill Hagerty, on March 13.
While both pieces of legislation feature similar provisions, they highlight different areas of focus.