The Wyoming Stable Token (WYST) is a pioneering initiative by the U.S. state of Wyoming to introduce a state-issued stablecoin. Designed to be fully backed by U.S. dollars held in trust by the state, each WYST token is intended to be redeemable for one U.S. dollar, ensuring its stability and reliability.
Development and Testing
As of March 2025, Wyoming has commenced testing WYST across multiple blockchain platforms, including Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base. This testing phase aims to evaluate the token's functionality and interoperability within the broader blockchain ecosystem.
Technical Infrastructure
The state has partnered with LayerZero Labs to leverage their Omnichain Fungible Token (OFT) standard for WYST's deployment. This technology facilitates seamless movement of tokens between different blockchains without relying on centralized bridges, thereby enhancing security and efficiency.
Reserve and Overcollateralization
To maintain price stability and public trust, WYST will be fully backed by a combination of cash and U.S. Treasury securities. The reserves will exceed the total number of tokens issued, implementing an overcollateralization model that distinguishes WYST from some algorithmic stablecoins that have faced challenges in the past.
Economic and Social Impact
Interest earned from the reserves backing WYST is earmarked to support Wyoming's School Foundation Fund, illustrating a direct benefit to public services through the adoption of this stablecoin. This approach reflects Wyoming's commitment to integrating innovative financial solutions with tangible community advantages.
Regulatory Framework
The Wyoming Stable Token Commission, established under the Wyoming Stable Token Act of March 2023, oversees the issuance and management of WYST. The commission comprises state officials and subject matter experts dedicated to ensuring the stablecoin's compliance with legal and financial standards.
