Wyoming’s Stable Token Advances to Critical Testing Phase

Wyoming is moving forward with its digital asset strategy as the Wyoming Stable Token (WYST) enters its testing phase across multiple blockchain networks.

This marks a key step toward launching the first fiat-backed and fully reserved stable token issued by a public entity in the United States.

The milestone was announced during a fireside chat at the DC Blockchain Summit, where Wyoming Stable Token Commission Executive Director Anthony Apollo and Commission Chairman Governor Mark Gordon discussed the state’s leadership in digital asset innovation.

The commission has begun deploying test versions of WYST on major blockchain networks, including Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Base. These preliminary tokens, issued in collaboration with LayerZero, hold no real value but are designed to refine the token’s functionality before an official launch.

Governor Gordon emphasized Wyoming’s commitment to transparency, financial security, and innovation in blockchain technology.

“Our forward-thinking approach to digital asset legislation has positioned Wyoming as a model for not only other states, but the federal government as well,” he stated.

The testing phase will continue throughout the second quarter of 2025, with a potential full launch in July.

Unlike privately issued stablecoins, WYST will be fully backed by US Treasuries, cash, and repurchase agreements. It will also maintain a statutory requirement of no less than 102% capitalization to mitigate risks such as de-pegging. Interest earned from reserve assets will be directed into Wyoming’s School Foundation Fund to support education.

Apollo noted that once launched, WYST will allow for near-instant, low-cost, dollar-denominated transactions worldwide.

“The next phase of testing and customizing smart contracts is an imperative step toward delivering the best product for Wyoming and stable token holders,” he said.

Wyoming has actively positioned itself as a hub for blockchain and cryptocurrency businesses, passing more than 45 pieces of crypto-related legislation since 2016. More than a thousand LLCs with crypto-related names have been registered in the state, signaling interest in its regulatory framework.

However, Wyoming’s financial returns from its crypto initiatives have been mixed. In 2023, the state invested $2 million across all crypto-related projects but saw only $473,000 in returns. Earlier this year, lawmakers voted against establishing state-level crypto reserves due to concerns over risk and volatility.

Despite these challenges, Wyoming continues to explore digital asset opportunities. The state is considering nine potential blockchains, including Solana, Ethereum, and Polygon, as hosts for WYST.

With input from Bloomberg and Wyoming Tribune Eagle.