Wyoming has taken a major step forward in the race to become a blockchain policy leader in the United States. The state has officially begun testing its own government-backed stablecoin, the Wyoming Stable Token (WYST), across several major blockchain networks. The tests are being conducted on Ethereum, Solana, Avalanche, and others, marking a critical step toward a planned launch in July 2025. WYST will be issued under the authority of the Wyoming Stable Token Commission and built using LayerZero’s Omnichain Fungible Token (OFT) standard to enable seamless movement between blockchains without relying on centralised bridges. WYST launch backed by US Treasuries The WYST token will be fully backed by a combination of cash and US Treasury securities, with reserves exceeding the total number of tokens issued. This overcollateralisation model is designed to maintain price stability and instil public trust. Unlike algorithmic stablecoins that have failed in the past, WYST will hold assets that match or exceed the token supply at all times. Interest earned on these reserves will go directly to Wyoming’s school foundation fund, creating a mechanism through which stablecoin adoption could directly benefit public services in the state. The initiative is being managed by the Wyoming Stable Token Commission, formed after the passage of the Wyoming Stable Token Act in March 2023. This marks a rare example of a US state pursuing its own stablecoin project under direct legislative authority. LayerZero enables cross-chain transfers The commission has partnered with LayerZero to build WYST on the OFT standard. This framework allows tokens to move securely across blockchains without the need for third-party bridges, which are often targets for exploits. LayerZero’s protocol is designed to enable cross-chain communication using decentralised oracles and relayers, reducing the risk of hacks that have plagued the industry. WYST has already been successfully transferred between Ethereum and Avalanche during testnet demonstrations using Stargate, a LayerZero-enabled bridge. While Stargate was used for initial testing, WYST will be compatible with any interface that supports LayerZero’s OFT standard. These developments were shared during the DC Blockchain Summit on 26 March, where Wyoming Governor Mark Gordon and Stable Token Commission Executive Director Anthony Apollo confirmed that the token had entered its testing phase. The state aims to use these trials to ensure smart contracts function properly, identify vulnerabilities, and confirm that cross-chain mechanics are stable ahead of the launch window. Testnets include Ethereum, Solana, Avalanche WYST is being deployed on multiple blockchain testnets to prepare for a wide-scale launch. The inclusion of Ethereum, Solana, Avalanche, and others allows Wyoming to ensure compatibility with the most widely used decentralised finance platforms. The testnet version of the token does not carry any real-world value but replicates the behaviour of the live version. Each blockchain brings different capabilities to the table. Ethereum provides robust security and institutional adoption. Solana offers faster transaction speeds and lower fees, while Avalanche provides high scalability and eco-friendliness. By deploying WYST across these networks, the state is aiming to build a flexible, future-ready digital asset. This approach positions WYST as a uniquely interoperable state-issued stablecoin, capable of serving multiple decentralised ecosystems. It also reflects Wyoming’s broader strategy of developing comprehensive blockchain legislation and infrastructure, attracting both startups and institutional players to the state. Wyoming aims for stablecoin leadership With initial testing underway, the next few months will be focused on refining WYST’s smart contracts, finalising risk management protocols, and expanding test coverage. If these elements are completed on schedule, the token could see a full-scale launch by July 2025. Wyoming’s move into stablecoins follows years of progressive blockchain legislation. The state has created a favourable regulatory environment for decentralised technologies, and WYST could become the first government-issued stablecoin of its kind in the US. The post Wyoming stablecoin WYST enters test phase across Ethereum, Solana, and Avalanche appeared first on Invezz
