Wyoming has taken a leading role in the development and implementation of a state-issued stablecoin called the Wyoming Stable Token (WYST).
Here’s a breakdown of the key aspects of Wyoming’s stablecoin initiative:
- First state-issued stablecoin: WYST is intended to be the first fiat-backed stablecoin issued by a US state government.
- Backed by the US Dollar: The token is designed to be fully backed by US dollars, with a minimum reserve of 102%, and will be redeemable for one US dollar.
- Reserve Assets: The reserves will consist of US Treasury bills and repurchase agreements.
- Transparency: The state aims for the stablecoin to be transparent, with its reserves publicly available online.
- Purpose: WYST is envisioned for various uses, including:
– Faster and cheaper payments for individuals and businesses, including government contractors.
– Facilitating institutional transactions.
– Potential use in the DeFi space.
- Revenue Generation: The state expects to generate revenue from the interest earned on the reserve assets, which can be used to fund education and infrastructure projects.
- Wyoming Stable Token Commission: This commission, established by the Wyoming Stable Token Act, is responsible for issuing, managing, and overseeing the integration of WYST into public finance.
- Technology: Wyoming is exploring various public blockchains, including Solana, Ethereum, Avalanche, Sui, Stellar, Polygon, Arbutrium, Base, and Optimism to host WYST, potentially using a multi-chain deployment.
- Rationale: Wyoming’s leadership in this area stems from its proactive approach to blockchain and digital asset regulation, aiming to position itself as a hub for innovation and potentially influence federal stablecoin regulation.
What is a Wyoming stable token?
A Wyoming stable token is a virtual currency representative of and redeemable for one (1) United States dollar held in trust by the state of Wyoming as provided by W.S. 40‑31‑106. Stable tokens shall only be issued in exchange for United States dollars.
What is the best stable coin to buy?
The five top stablecoins are Tether, USDC, Ethena USDe, Dai, and World Liberty Financial USD. While Tether and USDC are likely to keep their top spots, new stablecoin entrants are likely to round out the top five next year.
Is Wyoming trying dollar crypto payments?
I can help with that. Wyoming reportedly tested its planned state-issued stablecoin, the Wyoming Stable Token (WYST), Thursday (July 17), seeing how it could be used for real-time payments to government contractors.
Are stable coins still risky?
In its Annual Economic Report 2025, the Bank for International Settlements (BIS) issued a stark warning about stablecoins. Its concerns include the potential for stablecoins to undermine monetary sovereignty, transparency issues and the risk of capital flight from emerging economies.