By
Mayowa Adebajo
June 17th, 2024
With the STC granted permission to proceed with the launch of WYST, it is speculated that the stablecoin will be officially hosted on the Ethereum blockchain.
After a series of deliberations since 2022, Wyoming is finally making strides toward launching the first state-backed stablecoin in the United States.
In a recent social media post, crypto commentator MartyParty announced that the state has commenced minting the digital asset dubbed Wyoming Stable Coin” (WYST). The token, backed 1:1 to the value of the US dollar, is slated to begin circulation later this year, with an exact date yet to be disclosed.
WYST also has a dedicated website launched by the Wyoming Stable Token Commission (STC) where users can find information regarding the progress of the digital currency. The STC serves as a regulatory body responsible for issuing and overseeing the launch of the stablecoin.
The commission, established in March last year was empowered by the passage of Senate Enrolled Act 85: Wyoming Stable Token Act, granting it the authority to issue the first state-backed stablecoin in the US.
Wyoming’s Stablecoin Journey
The state of Wyoming, renowned for its picturesque landscapes including Yellowstone, Grand Teton, and Grand Prismatic Spring, embarked on its stablecoin journey in February 2022.
The project started when a group of lawmakers in the region took an interest in the crypto market, particularly the stablecoin sector, and proposed the stablecoin bill to enable the state to issue a digital asset. The stablecoin would be a virtual representative of the fiat currency and redeemable for one US dollar held in trust by the state of Wyoming.
The objective was to enable Wyoming, often dubbed the Cowboy State, to embrace blockchain technology, conduct transactions in digital currency, and facilitate payments without the risks associated with the volatile crypto market.
However, in the same year, the state temporarily suspended the plan after Governor Mark Gordon urged caution, emphasizing the need for careful implementation to ensure long-term success.
“There is value in being first, but more so in being long-lived and reliable. Wyoming’s reputation is at stake,” the Governor said.
After thorough evaluation, the bill was eventually passed this year during the Budget Session as Senate Enrolled Act 44. This act grants the state authority to issue the proposed stablecoin backed by reserve assets such as US treasuries.
Wyoming Stablecoin to Debut on Ethereum
With the STC granted permission to proceed with the launch of WYST, it is speculated that the stablecoin will be officially hosted on the Ethereum blockchain. According to reports, the move could offer users the opportunity to interact with the token across different decentralized finance (DeFi) platforms focused on buying and selling digital assets.
However, the STC had earlier confirmed that WYST will only be available to centralized exchanges (CEXs) registered and regulated in the United States such as Coinbase and Binance.US.
Meanwhile, while, Wyoming was the first state to pass a stablecoin law that allows for the creation of the digital asset in the region, it is not the only US state interested in having its own state-backed stablecoin. In April last year, lawmakers in the American state of Texas also introduced new bills that allow the state to issue a state-based virtual currency backed by gold.