At the DC Blockchain Summit on Wednesday, a pivotal conversation unfolded as Anthony Apollo, executive director of the Wyoming Stable Token Commission, moderated a fireside chat with the governor and commission chair Mark Gordon to unveil the state’s potential stablecoin launch.
This discussion underscored Wyoming’s pioneering role in the realm of digital assets and marked a significant milestone in the state’s efforts to innovate within the blockchain space.
WYST Stablecoin Testing Begins On Major Blockchains
Director Apollo announced that the Wyoming Stable Token (WYST) has officially entered its testing phase across multiple blockchain networks. This initiative is poised to launch the first fiat-backed and fully-reserved stablecoin issued by a public entity in the United States.
The WYST stablecoin reportedly aims to provide a secure and transparent digital currency option, reinforcing Wyoming’s commitment to leading in the digital asset sector.
The Commission plans to deploy WYST on publicly visible blockchains, allowing for greater transparency and accountability. Smart contract addresses have already been shared on several prominent networks, including Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Base testnets.
The initial tokens, which are value-less test tokens, have been developed in partnership with LayerZero, a blockchain company known for its interoperability solutions.
“We are excited for the opportunity to collaborate with the Commission on this historic initiative and are committed to delivering solutions that exceed expectations,” said Simon Baksys, VP of Business Development at LayerZero Labs.
Aiming For Low-Cost Dollar Transactions
During the fireside chat, Governor Gordon emphasized Wyoming’s dedication to transparency and innovation. He discussed the transformative potential of blockchain technology in creating a secure and efficient financial ecosystem:
We are thrilled to share Wyoming’s vision for state leadership in the nation’s capital. 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.
The benefits of the WYST stablecoin will reportedly extend beyond technological innovation; they include a statutory requirement for over-collateralization with cash and US Treasuries to mitigate the risk of de-pegging.
Additionally, any interest accrued from these treasuries will be deposited into the state’s school foundation fund, creating a direct benefit for residents. Testing is anticipated to occur throughout the second quarter of 2025, with a potential launch slated for July 2025.
“The next phase of testing and customizing smart contracts is an imperative step towards delivering the best product for Wyoming and stable token holders,” Director Apollo stated.
Once launched, WYST will enable holders to conduct dollar-denominated transactions of any value nearly instantaneously and at significantly reduced fees compared to traditional ACH or wire transfers.
In a demonstration of the WYST stablecoin’s capabilities, a test transaction between Ethereum and Avalanche blockchain testnets was successfully conducted by Stargate, a third-party bridge powered by LayerZero.
Featured image from DALL-E, chart from TradingView.com
