Wyoming Set to Launch State-Backed Stablecoin WYST in July

State officials announced the launch of the pilot phase during the DC Blockchain Summit. The project aims to improve the transparency of financial operations and ensure the security of transactions. Furthermore, testing will involve multiple blockchain networks, including Avalanche, Solana, Ethereum, and others. 

The state is partnering with LayerZero to carry out the initial trials. The company is providing the infrastructure needed to deploy the token across multiple chains. Officials plan to complete all testing by the end of Q2 2025, with the official launch of WYST expected as early as July.

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WYST Token Testing and Development

At the event, officials confirmed that the WYST token had been deployed on test networks including Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Base. The project uses the Omnichain Fungible Token (OFT) protocol by LayerZero, which enables seamless compatibility and scalability across multiple blockchains.

To test smart contract performance, the team conducted a demonstration transaction between Ethereum and Avalanche using the third-party bridge Stargate.

The next phase of testing and customizing smart contracts is an imperative step towards delivering the best product for Wyoming and stable token holders… Once launched, WYST will grant holders the ability to transmit dollar-denominated transactions of any value, anywhere in the world, nearly instantly, with significantly reduced fees compared to traditional ACH or wires,

said Anthony Apollo, Executive Director of the Wyoming Stable Token Commission.

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Outlook and Legal Framework

Wyoming has taken an active role in advancing digital asset innovation for several years. 

In particular, in 2023, the state established the Wyoming Stable Token Commission under the Wyoming Stable Token Act. This initiative launched the development of the WYST token, which is backed by cash and U.S. Treasury Bills. This reserve structure is designed to maintain the token’s price stability. Moreover, the state plans to direct interest earnings from the reserves into Wyoming’s school fund.

We are thrilled to share Wyoming's vision for state leadership in the nation's capital… Our forward-thinking approach to blockchain and digital asset legislation has positioned Wyoming as a model for not only other states, but the federal government as well,

said Governor Mark Gordon.

State officials emphasized that continued testing and fine-tuning of smart contracts are essential steps to ensure a stable and secure product. According to them, the stablecoin will enable near-instant dollar transactions with far lower fees than traditional transfer methods.

Related: The Bitcoin Research Institute to Open in Wyoming

The development team is actively working on establishing internal controls and a reserve management system to ensure transparency and accountability in the use of public funds.

Overall, Wyoming continues to lead the way in digital innovation, paving the path for financial technology growth both locally and across the United States.