Wyoming is preparing to launch its stablecoin on LayerZero, called the Wyoming Stable Token, possibly by July 2025.
According to the official announcement on Mar. 26, The Wyoming Stable Token Commission, which will oversee the launch, has partnered with LayerZero (ZRO) to develop and distribute the token. At the DC Blockchain Summit, Wyomings governer Mark Gordon and commission executive director Anthony Apollo revealed that WYST has entered its testing phase.
The state-issued stablecoin has been deployed on testnets for Avalanche (AVAX), Solana (SOL), Ethereum (ETH), and more blockchains. These test tokens have no real value yet, but they help ensure the system works properly before the official launch.
WYST will be fully backed by cash and U.S. Treasury securities to ensure stability. Interest from these reserves will be transferred to Wyomings school foundation fund to ensure that the stablecoin benefits the state. To ensure it maintains its value, WYST will have more reserves than the total number of tokens issued since it will be overcollateralized.
Governor Gordon stressed that Wyoming is a leader in the use of blockchain technology and that the states commitment to financial innovation sets an example for other states.
“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.”
— Mark Gordon, Wyoming Governor
Regarding the choice of blockchain, the commission settled on LayerZeros Omnichain Fungible Token standard because it will enable WYST to function seamlessly across multiple blockchains. This lowers security risks by enabling users to move WYST between networks without depending on centralized bridges.
A recent test transaction showed WYST moving between Ethereum and Avalanche using Stargate, a LayerZero-powered bridge. However, any compatible interface will be able to support WYSTs transfers.
Wyoming lawmakers have been working on the stablecoin since passing the Wyoming Stable Token Act in March 2023. The commission will continue refining WYSTs smart contracts and risk management framework. If testing goes as planned, the stablecoin could launch as early as July 2025.