Wyoming Moves Closer to Debuting Its State-Backed Digital Asset on LayerZero by July

Tech

Wyoming Moves Closer to Debuting Its State-Backed Digital Asset on LayerZero by July

Wyoming is set to launch a stablecoin, marking the first fiat-backed token issued by a public entity in the U.S.

• The Wyoming Stable Token (WYST) is undergoing testing on various platforms, including Avalanche, Solana, and Ethereum.

Wyoming is taking a step forward in the world of digital currency with the creation of the Wyoming Stable Token (WYST), setting itself up to be the first U.S. state to issue a fiat-backed stablecoin.

The Wyoming Stable Token Commission has initiated testing of WYST across multiple blockchain networks. It includes Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Base testnets.

These initial, insignificant test tokens are designed to test the functionality and security of the token before its official launch. LayerZero Labs, chosen via competitive RFP, is conducting this deployment with its Omnichain Fungible Token (OFT) Standard, allowing for frictionless cross-chain transactions.

In partnership with LayerZero, a demo transaction was executed between the Ethereum and Avalanche testnets via Stargate, a third-party bridge fueled by LayerZero.

This showcases WYSTs capability for cross-chain interoperability, a critical feature for its anticipated widespread adoption.

Regulatory Framework and Oversight

The Wyoming Stable Token Act of March 2023 created the legal framework for WYST. In addition, the Act requires that the stablecoin be entirely collateralized with cash and U.S. Treasury instruments to promote stability and credibility.

Besides, the interest accrued from these reserves is designated for the state‘s school foundation fund. It highlights the project’s potential benefits for public education. Governor Mark Gordon has been a vocal advocate for this initiative, emphasizing its potential to position Wyoming at the forefront of digital asset innovation.

Gordon further stated:

“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.”

Significantly, the trials are anticipated to be ongoing through the second quarter of 2025, with a possible formal launch targeted for July 2025. The Commission is in active talks with vendors in order to finalize major elements of WYSTs development.