Wyoming has announced the testing phase of its groundbreaking state-issued stablecoin, the Wyoming Stable Token (WYST), marking a historic moment as the first fiat-backed and fully reserved stablecoin issued by a US public entity.
During a fireside chat at the DC Blockchain Summit, Wyoming Governor Mark Gordon and Executive Director Anthony Apollo revealed that WYST has entered its testing phase across multiple blockchain networks, including Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base.
The stablecoin's design incorporates over-collateralization using cash and US Treasuries, with interest generated from these reserves being directed to Wyoming's School Foundation Fund. This innovative approach combines financial technology with public benefit.
LayerZero Labs, selected through a competitive process, will handle the technical deployment of WYST using its Omnichain Fungible Token Standard. This architecture enables native issuance and bridging across multiple blockchain networks, demonstrated through successful cross-chain transactions between Ethereum and Avalanche testnets.
The Commission plans to continue testing through the second quarter, targeting a public launch in July 2025. Wyoming residents and domiciled entities can register as alpha testers through the Commission's website, participating in this pioneering financial initiative.
"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," stated Governor Gordon, highlighting the state's leadership in blockchain innovation.
The project aims to provide users with the ability to transfer dollar-denominated value globally with lower transaction fees compared to traditional banking systems. Smart contract addresses for WYST test deployments have been made public, allowing for transparency and third-party integration during the testing phase.
This development comes as the House updates its STABLE Act legislation, setting clearer guidelines for stablecoin regulation at the national level.