The state of Wyoming is gearing up to launch its long-planned stablecoin in the coming months, Governor Mark Gordon said at the DC Blockchain Summit on Wednesday, with the state eyeing a potential July debut following a period of testing.
The stablecoin, which was first proposed via a state bill in February 2022, will be powered by LayerZero and be usable across multiple chains, including Ethereum, Solana, Avalanche, and the Ethereum scaling networks Base, Polygon, Arbitrum, and Optimism.
“We are thrilled to share Wyoming's vision for state leadership in the nation's capital,” Governor Gordon said in a press release issued following his DC Blockchain Summit interview. “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.”
Wyoming Lawmakers Want State to Launch Its Own Stablecoin
Will a state launch its own stablecoin by the end of the year? It could happen if legislation proposed in Wyoming this week ultimately passes. On Thursday, lawmakers proposed the Wyoming Stable Token Act (SF0106), which paves the way for the crypto-friendly state to launch its own dollar-pegged token. The proposed bill is sponsored by state senators Chris Rothfuss and Tara Nethercott, along with state representatives Mike Yin and Jared Olsen. The act would allow Wyoming treasurer Curtis Meier Jr...
The token, WYST, which is now in testing phase across seven blockchain testnets, is poised to benefit both the state and its users, according to the Governor. He said that it will require an over-collaterization of the cash and U.S. Treasuries that back the token to reduce the risk of de-pegging, or shifting from the 1:1 ratio the token is supposed to hold with the U.S. Dollar.
Additionally, interest from the treasuries that back the token will be deposited into the state’s school foundation fund, according to a press release from the Governor.
Though the idea of its state stablecoin first surfaced in 2022, Wyoming’s progress accelerated in March 2023 with the passing of the Wyoming Stable Token Act, which led to the creation of the Wyoming Stable Token Commission—the group ultimately tasked with issuing a stablecoin that “aligns with state laws and fiscal responsibility.”
The Commission, which is leading the launch of WYST, is currently still engaging with vendors as it relates to the “development, deployment, and management of WYST.”
Custodia Launches Bank-Issued Stablecoin on Ethereum
Crypto friendly Custodia Bank, working alongside Vantage Bank, completed the tokenization of dollar-demand deposits with the issuance of its trademarked Avit stablecoin on Ethereum mainnet. The stablecoin issuance, which the bank says is the “first bank-issued stablecoin on a permissionless blockchain,” took place in eight transaction stages. Custodia Bank handled the blockchain issuance and custody services while Vantage Bank provided FedWire/ACH services and managed the stablecoin fiat reserv...
“The next phase of testing and customizing smart contracts is an imperative step towards delivering the best product for Wyoming and stable token holders,” said Commission Executive Director Anthony Apollo. “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.”
The testing process is expected to occur throughout Q2 2025, leading up to the potential July launch.
Stablecoins remain at the center of crypto headlines in recent days and weeks, highlighted by the GENUIS Act, a bipartisan bill to create a regulatory framework for the tokens and their issuers.
On Tuesday, Wyoming-based Custodia Bank said it created the first bank-issued stablecoin on Ethereum. Wyoming’s launch of WYST would be the “first fiat-backed and fully-reserved stable token issued by a public entity in the United States,” according to the release.
Editor's note: This story was updated after publication with additional details.
Edited by Andrew Hayward
