Wyoming’s WYST Stablecoin: Chainalysis and Inca Digital Tackle Illicit Use

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Wyoming Stablecoin: Chainalysis, Inca Digital Selected to Help Detect Illicit Use of WYST

In a recent announcement, Wyoming, one of the U.S. states, has shortlisted nine potential blockchain platforms for its upcoming digital currency called WYST, nicknamed the Wyoming Stablecoin. The state has chosen Layerzero, an all-encompassing interoperability protocol for various blockchains, as the leading candidate for developing smart contracts.

Wyoming Eyes Multiple Blockchains for Upcoming Stablecoin Launch

In simple terms, Wyoming has chosen nine different types of blockchains that could potentially house its upcoming stablecoin. Anthony Apollo, the head of the Wyoming Stable Token Commission, mentioned that LayerZero, a protocol that enables interoperability across various blockchains, was ranked as the best option for developing smart contracts during a selection process. This choice of LayerZero, according to Apollo, means that Wyoming can simultaneously launch its stablecoin on multiple blockchains.

As a researcher delving into the realm of digital currencies, I’ve uncovered an intriguing strategy employed by Wyoming. In response to queries from TopMob, they have revealed their methodology for launching a stablecoin, which involves a series of trials across various blockchain platforms before settling on one for the initial deployment. Moreover, they’ve adjusted their procurement regulations to enable these tests on diverse chains.

At our December gathering, Apollo mentioned we’ve added a rolling assessment process to our procurement guidelines for selecting blockchains. This means we can reconsider new or previously unqualified blockchains, potentially allowing us to extend the stable token to more chains in the future,” explained Apollo.

WYST Requires 102% Reserves for Outstanding Tokens

As previously reported by TopMob, 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.

Supporters of the project believe that the introduction of WYST could strengthen Wyoming’s position as a digital asset pioneer. However, opponents worry that if proper precautions aren’t taken, this stablecoin might be exploited for illegal activities. To tackle such concerns and ensure consumer safety, Apollo stated that Wyoming intends to utilize the compliance measures already established at Licensed Service Providers to minimize the risk of WYST being used in illicit activities. Furthermore, he mentioned that these steps would also help protect consumers.

Additionally, we have issued two Requests for Proposal (RFPs): ‘On-Chain Monitoring’ and ‘Ecosystem Intelligence’. These are intended to assist the Commission in tracking the usage (and intended use) of WYST. The leading vendors in these categories, as determined by our evaluation, are Chainalysis for ‘On-Chain Monitoring’ and Inca Digital for ‘Ecosystem Intelligence’.

Additionally, Apollo clarified that Wyoming is authorized to halt and confiscate WYST tokens suspected of being used in illegal activities; however, this action can only take place following the acquisition of a legitimate court order.

About the supporting structure and reserves for the stablecoin, Apollo stated that WYST is legally obliged to keep at least 102% of the current token value in reserve. This measure aims to prevent the stablecoin from deviating from its pegged value. Additionally, Apollo disclosed that WYST will be fully backed by U.S. dollars, short-term U.S. Treasury bonds, and repurchase agreements related to these securities.

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2025-03-27 13:02