By July this year, Wyoming plans to launch its stablecoin, the Wyoming Stable Token (WYST). If successful, it will be the first fiat-backed, fully state-issued stablecoin in the U.S.
Wyoming's Stablecoin Plan
Wyoming officials announced at the DC Blockchain Summit that WYST is already in its testing phase. The token is being tested on multiple blockchain networks, including Avalanche, Solana, and Ethereum. Other networks in the test phase include Arbitrum, Optimism, Polygon, and Base. Wyoming has partnered with LayerZero, a blockchain interoperability firm, to ensure WYST can work across these platforms.
Why Does Wyoming Want a Stablecoin?
Stablecoins are digital tokens pegged to a fixed value, usually the U.S. dollar. Through their platform, people can send instant funds at reduced rates compared to traditional bank transfer costs. Governor Mark Gordon and Apollo stated that WYST will benefit Wyoming residents and businesses through its key advantages: faster payments and transactions costing less than ACH or wire transfers. WYST allows users to instantly send funds from any location to any other location.
What Happens Next?
The Wyoming officials modified WYST’s smart contracts under their supervision to achieve operational readiness before the market launch. The developers aim to produce a secure payment token for user integration. The new proposed bills led Washington lawmakers and Congress members to enhance stablecoin regulatory measures. Wyoming’s actions might stimulate multiple American states to develop comparable regulatory frameworks.
The launch of WYST could be a significant step in stablecoin development in the U.S., influencing state-level digital currency regulation. If successful, it may set a precedent for other states looking to harness stablecoin benefits.
