The U.S. state of Wyoming has identified nine candidate blockchains to host its upcoming stablecoin, dubbed WYST. The state has selected Layerzero, an omnichain interoperability protocol, as the top-ranked vendor for smart contract development.
Wyoming Eyes Multiple Blockchains for Upcoming Stablecoin Launch
The U.S. state of Wyoming has identified nine candidate blockchains as potential hosts for its soon-to-be-launched stablecoin. According to Anthony Apollo, executive director of the Wyoming Stable Token Commission, LayerZero, an omnichain interoperability protocol, emerged as the top-ranked vendor for smart contract development during a procurement process. This selection of LayerZero, Apollo said, allows Wyoming to launch on multiple chains simultaneously.
In written answers to questions from Bitcoin.com News, Apollo disclosed that Wyoming’s approach to launching the stablecoin involves testing on multiple chains before selecting one for the initial launch. He added that the state had amended procurement rules to ensure it could test the stablecoin on other chains.
“During our December monthly meeting, we incorporated rolling qualifications into our procurement rules. This enables us to reassess new blockchains or re-evaluate those that did not initially qualify, paving the way for potential future expansion of the stable token onto additional chains,” Apollo explained.
WYST Requires 102% Reserves for Outstanding Tokens
As previously reported by Bitcoin.com News, Wyoming initially announced plans to launch a dollar-dependent stablecoin in the first quarter of 2025 in August last year. However, Apollo suggested that the launch can only proceed once contract negotiations with vendors, which are ongoing, are complete. He said once all processes, including launching a test token on at least one testnet and testing token functionality, are done, the WYST may be launched sometime in July 2025.
While proponents of the initiative assert the launch of WYST will likely solidify Wyoming’s status as a “leader in digital assets,” critics argue the stablecoin could be used for illicit purposes if safeguards are not in place. To address this possibility as well as consumer protection concerns, Apollo said Wyoming will rely on compliance frameworks in place at Licensed Service Providers to mitigate the risk of using WYST for illicit purposes. He added:
“Further, two of our [Requests for Proposal] RFPs – ‘On-Chain Monitoring’ and ‘Ecosystem Intelligence’ – were put forth to help the Commission monitor use (and intended use) of WYST. The qualified vendors that achieved top ranks in these sectors were Chainalysis and Inca Digital, respectively.”
Apollo also explained that while Wyoming will have the right to freeze and seize WYST tokens used for illicit purposes, this can only be done after obtaining a formal court order.
Regarding the mechanism and reserves to be used for backing the stablecoin, Apollo said WYST has a “statutory requirement to reserve at least 102% of the notional value of tokens outstanding.” This is intended to mitigate against depegging. Apollo also revealed that WYST will “be fully backed by U.S. dollars, short-duration U.S. Treasury securities, and repurchase agreements thereof.”
