The state of Wyoming, one of the leading regions in promoting blockchain and digital assets, is about to launch the WYST stablecoin. If successful, WYST will become the first stablecoin in the U.S. issued by a public organization, marking a significant milestone in the digital finance industry.
WYST – The first public stablecoin in the U.S.
At the DC Blockchain Summit on March 26, 2025, Governor Mark Gordon revealed that #WYST could officially launch in July 2025, after completing testing in the second quarter of this year.
This project has been planned for a long time, with the foundation being the Wyoming Stable Token Act passed in March 2023. This act established the Wyoming Stable Token Commission, which is responsible for issuing and managing the stablecoin according to state financial policies. Wyoming aims to use WYST to promote the blockchain technology industry and optimize the payment system.
How WYST works
WYST is designed with the highest safety standards to ensure a 1:1 ratio with USD, avoiding de-pegging risks. The core elements of WYST include:
Asset-backed reserves: This stablecoin will be fully backed by cash and U.S. government bonds, with over-collateralization requirements to ensure stability.
Launching on LayerZero: WYST will operate on major blockchains like Ethereum, Solana, Avalanche, along with Ethereum scaling solutions including Base, Polygon, Arbitrum, and Optimism.
Testing on 7 blockchain testnets: The testing phase will last until the second quarter of 2025 to evaluate stability before official deployment.
Economic benefits and practical applications
One of the most notable points of WYST is that the profits from government bonds backing the stablecoin will be transferred to the Wyoming state education fund. This is a groundbreaking direction that allows Wyoming to leverage blockchain not only in finance but also to support the state's public education system.
Additionally, according to Anthony Apollo, Executive Director of the Wyoming Stable Token Commission, WYST will enable users to transact in USD almost instantly, at a much lower cost than traditional methods such as bank transfers (ACH) or automatic clearing payments.
Context of the launch and its impact on the market
The launch of WYST by Wyoming comes at a time when stablecoins are becoming the focal point of the crypto industry, especially as the U.S. government is considering the GENIUS Act to establish a legal framework for stablecoins and their issuers.
Not only Wyoming, but other financial organizations are also starting to take an interest in stablecoins:
Custodia Bank, based in Wyoming, just issued the first stablecoin issued by a bank on Ethereum.
Some other states are also researching their own stablecoin models to optimize digital payments and transactions.
Wyoming – The pioneering state in the cryptocurrency industry
#Wyoming has long been a leading state in blockchain policy. This state has enacted over 20 important laws, including:
Recognition of the legal status of decentralized autonomous organizations (DAOs).
Allowing insurance companies to invest in Bitcoin and other cryptocurrencies.
Proposal to invest public funds in Bitcoin in January 2025.
With these moves, Wyoming continues to solidify its position as the 'most crypto-friendly state' in the U.S.
Conclusion
The launch of WYST not only helps Wyoming lead the stablecoin sector but also opens up many opportunities for blockchain applications in traditional finance. If successful, WYST could serve as a model for other states in the U.S. and establish a new standard for stablecoins issued by public organizations.