Wyoming is set to introduce its own stablecoin, WYST, by July, marking a significant step in the state’s venture into digital assets.
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The state has partnered with LayerZero, a well-known interoperability protocol, to issue this fiat-backed, fully-reserved stablecoin. To ensure the WYST maintains its peg to the US dollar, it will be supported by a combination of cash, US Treasury bonds, and repurchase agreements.
The state is currently evaluating nine different blockchain platforms, including Solana, Ethereum, and Polygon, to host the WYST stablecoin. Governor Mark Gordon revealed the partnership with LayerZero at the DC Blockchain Summit. This move places Wyoming at the forefront of government-backed blockchain initiatives, though it appears to be independent of the state’s previous attempts to incorporate Bitcoin into its reserves.
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Interestingly, the state’s fiscal conservatives previously opposed using state funds to purchase Bitcoin, which led to the demise of a Bitcoin Reserve bill championed by Senator Cynthia Lummis. Despite this, Wyoming is moving forward with the stablecoin project, which does not rely on Bitcoin and avoids the controversy surrounding it. The state is aiming for a reserve-backed stablecoin with a statutory 102% capitalization to ensure its stability, and the returns on these reserves are expected to help fund key public projects like education and infrastructure.
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While the project is still in its early stages, Wyoming’s $31 billion in investments, including US Treasury bonds and cash reserves, may provide the necessary foundation for WYST. The outcome of this small-scale experiment could pave the way for further innovations in the state’s digital asset strategy.
Alexander Stefanov
