Wyoming launches WYST: the first US state stablecoin

Wyoming introduces WYST, the first state stablecoin in the US. Based on dollars and Treasury bonds, it focuses on security, transparency and innovation.

Wyoming has officially started testing the first state stablecoin in the United States, the Wyoming Stable Token (WYST). The token has already been implemented on the testnets of several blockchains simultaneously: Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon and Base. At this stage, tokens with no real value are being used.

If the project is completed, WYST will become the first stablecoin backed by fiat issued by a US government agency. Its reserves will consist of dollars and government bonds, while interest from investments will go to the Wyoming Education Fund.

The launch was announced on 26 March during the DC Blockchain Summit. Details were revealed by Wyoming Governor Mark Gordon and the project's executive director Anthony Apollo. They pointed out that Wyoming continues to be a leader in the regulation of blockchain and digital assets at the state level.

"Our progressive approach to cryptocurrency regulation makes Wyoming a benchmark not only for other states, but also for the federal government," said Gordon.

WYST's technology and infrastructure

LayerZero Labs, selected through a competitive process, is the partner responsible for issuing WYST's tokens. The project uses the Omnichain Fungible Token (OFT) standard, which enables native issuance on multiple blockchains and smooth transfer between them.

During the demonstration, the first cross-chain transaction between the Ethereum and Avalanche testnets was performed using the Stargate bridge, developed by LayerZero.

Simon Baksis, VP of Business Development at LayerZero Labs, said the company is honoured to be the State of Wyoming's technical partner for the WYST issue. He added:

"Nothing better represents the future of finance than a US state's decision to bring the dollar on-chain."

The multi-chain functionality, initially planned for a later phase, was instead integrated early in the project.

Governor Gordon stressed the importance of transparency and security. WYST's architecture will be open to audits and the project's reserves will be regularly audited by independent bodies.

Project management and launch plans

According to Anthony Apollo, the Stablecoin Commission is working with external partners to develop a comprehensive operational and regulatory framework. This includes reserve management mechanisms, internal control procedures and a system of external oversight.

Testing on WYST will continue until the end of the second quarter, and the public launch could take place as early as July 2025.

Apollo pointed out that in the future, WYST users will be able to transfer dollar value worldwide, in any amount and with minimal costs, especially compared to traditional systems such as ACH or bank transfers.

The project is conceived as a digital public good. WYST will be accessible to Wyoming residents and businesses registered in the state, who will be able to apply as testers via the Commission's website.

To ensure transparency, the team has already published the addresses of the smart contracts involved in the tests, allowing the community to review the code and developers to connect to the system to provide feedback. This open approach will help identify any vulnerabilities and improve the product before its official release.

The launch of WYST comes at a time of widespread national debate about the future of digital dollars and stablecoins in the US. Recently, the House of Representatives updated the STABLE Act, introducing clearer guidelines for regulating the stablecoin market.