In a significant step, the US state of Wyoming has decided to launch its stable token (WYST) this year, marking its entry into digital asset innovation. Notably, the Wyoming government’s initiative heralds the WYST, the first fiat-backed and fully-reserved stable token issued by a public entity in the United States.
Executive Director of Wyoming Stable Token Commission Anthony Apollo added that WYST has entered its testing phase on blockchain networks such as Ethereum, Avalanche, Solana, Arbitrum, Polygon, Optimism, and Base testnets. Also, the commission has partnered with blockchain interoperability firm LayerZero to deploy the WYST tokens on the blockchain networks.
Wyoming Governor Mark Gordon highlighted the potential of blockchain technology to create a secure and efficient ecosystem.
“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,” Gordon added.
Once launched, the stable token will benefit the state and its users by mitigating the risk of de-pegging (losing value) by providing legal obligations to over-collateralize backing WYST with cash and US treasuries. Additionally, the state could earn interest from the US Treasuries, which would be deposited into the state’s school foundation fund.
The crypto realm has been witnessing an increase in government initiatives to launch stablecoins and enter the crypto sector. US President Donald Trump’s crypto venture, World Liberty Financial, is also in the race to launch its dollar-pegged stablecoin — USD1. Since Trump has expressed his unwavering support for crypto, more government entities and business magnates are expected to step into the landscape.
