Wyoming's Stablecoin Debut on LayerZero Scheduled for July

The state of Wyoming is gearing up to introduce its LayerZero-based stablecoin, known as the Wyoming Stable Token (WYST), which may be available by July 2025. 

As stated in the official declaration on March 26, The Wyoming Stable Token Commission, responsible for managing the rollout, has collaborated with LayerZero (ZRO) to design and distribute the token. At the DC Blockchain Summit, Wyoming's governor Mark Gordon and commission executive director Anthony Apollo disclosed that WYST is currently in its testing stage.

The state-issued stablecoin has been implemented on testnets for Avalanche (AVAX), Solana (SOL), Ethereum (ETH), and other blockchains. These trial tokens lack actual value, but they facilitate the verification of the system's functionality before the formal introduction.

To ensure its stability, WYST will be fully supported by cash and U.S. Treasury securities. The interest earned from these reserves will be transferred to Wyoming's school foundation fund, ensuring the stablecoin contributes to the state's welfare. In order to maintain its value, WYST will have more reserves than the total number of tokens issued, as it will be overcollateralized.

Governor Gordon emphasized Wyoming's role as a frontrunner in blockchain technology adoption and that the state's dedication to financial innovation serves as a model for others.

 “Our progressive approach to blockchain and digital asset legislation has established Wyoming as a benchmark for not only other states but also the federal government.”

— Mark Gordon, Wyoming Governor

Regarding the blockchain selection, the commission decided on LayerZero's Omnichain Fungible Token standard because it will enable WYST to operate smoothly across various blockchains. This reduces security risks by enabling users to transfer WYST between networks without relying on centralized bridges.

A recent test transaction demonstrated WYST being moved between Ethereum and Avalanche using Stargate, a bridge powered by LayerZero. However, any interface that is compatible will be able to facilitate WYST transfers.

Wyoming legislators have been working on the stablecoin since passing the Wyoming Stable Token Act in March 2023. The commission will continue to refine WYST's smart contracts and risk management framework. If the testing proceeds as expected, the stablecoin could be launched as soon as July 2025.