Wyoming to Launch State-Backed WYST Stablecoin in July

Wyoming is preparing to launch its own stablecoin, called WYST, in July 2025. The state has teamed up with LayerZero, a well-known interoperability protocol, to issue the token. WYST will be pegged to the U.S. dollar and backed by a mix of cash, U.S. Treasury bonds, and repurchase agreements. The plan includes a strict 102% reserve requirement to ensure full support for each token issued.

This will be the first stablecoin fully issued by a government entity in the United States. Wyoming is currently considering nine different blockchains to host the stablecoin, including Ethereum, Solana, and Polygon. The aim is to carry out a small-scale test of stablecoin technology with the hope that it may grow over time.

Governor Mark Gordon announced the partnership at the DC Blockchain Summit. However, Senator Cynthia Lummis, a vocal crypto advocate from Wyoming, appears not to be directly involved in this project. In the past, Lummis pushed for a state-level Bitcoin Reserve bill, but it failed in committee due to opposition from fiscal conservatives, who were against spending taxpayer funds on Bitcoin.

The WYST project, however, is separate from the Bitcoin reserve debate. Its financial structure is built to avoid the need for new tax funding. Instead, the state plans to use the interest generated from WYST’s reserve assets to fund key public services such as education and infrastructure.

Some lawmakers are still concerned. Fiscal conservatives in Wyoming may object to using existing state investments for the stablecoin. Still, the state already controls about $31 billion in assets, including cash and U.S. bonds. That means Wyoming could use a portion of these holdings for WYST without needing new funds.

LayerZero stated that being chosen for this project is a sign of the future of finance. “There’s no clearer message about where money is going than a U.S. state putting the dollar onchain,” the company posted online. WYST will be a fully reserved, fiat-backed stablecoin, issued by the state and monitored under strict rules to protect its value.

Wyoming’s move comes as stablecoins become a bigger part of national conversations. President Trump has recently said that stablecoins could play a big role in maintaining the U.S. dollar’s global power. This adds more weight to Wyoming’s experiment, as it could act as a model for other states.

If the WYST stablecoin proves successful, it could inspire similar initiatives elsewhere. The goal is not only to test the technology but also to show how public finance can benefit from digital tools. A well-run state-backed stablecoin could provide a stable, trusted alternative to private crypto tokens while offering new ways to manage public money.

Wyoming is trying something bold. If it works, WYST could open the door to a new phase in government finance—where states don’t just regulate crypto but actively use it to serve their citizens.