Wyoming’s Bold Move: A Stablecoin Adventure Awaits! 🚀

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In the vast expanse of Wyoming, where the wind whispers secrets of the plains, a curious venture is afoot. This July, the state plans to unfurl its own stablecoin, WYST, with the help of LayerZero, a partner as reliable as a trusty steed. This digital currency will be tethered to the good old US dollar, using cash, Treasury bonds, and repurchasing agreements to keep it from wandering off into the wild.

Now, Wyoming, in its infinite wisdom, is pondering over nine potential blockchains to cradle this new creation. Just recently, the fiscal hawks of the state flinched at the thought of using public funds to dabble in Bitcoin. But fear not, dear reader, for this stablecoin endeavor is as separate from the Bitcoin reserve plan as a cow is from a cactus.

Wyoming’s Foray into the Stablecoin Frontier

Stablecoins are all the rage in the hallowed halls of government these days, especially after President Trump declared them vital for maintaining the global dollar’s reign. And here comes Wyoming, ready to dip its toes into this digital pond, partnering with LayerZero to launch WYST in July. Who knew the Wild West would become the Wild Web?

“We’re honored to be chosen by Wyoming as the token issuance partner for WYST, the first fiat-backed and fully-reserved stablecoin issued by a public entity in the United States. There’s no clearer signal of where finance is heading than a US state putting the dollar onchain,” LayerZero proclaimed, likely while wearing a cowboy hat and sipping on a sarsaparilla.

LayerZero, a big name in the interoperability game, will be the one to issue this shiny new stablecoin. The state is weighing its options, considering blockchains like Solana, Ethereum, and Polygon—like a kid in a candy store, but with a much more serious budget.

Governor Mark Gordon announced this partnership at the DC Blockchain Summit, a gathering that surely had more buzz than a beehive in spring. Interestingly, this plan seems to have left out Senator Cynthia Lummis, who has been waving the crypto flag like a true pioneer. This marks a historic moment, as it’s the first time a government entity has dared to launch its own stablecoin. Hold onto your hats, folks!

Reports suggest that Wyoming will enforce a rock-solid reserve requirement for WYST. The state plans to back these stablecoins with cash, US Treasury bonds, and repurchase agreements, ensuring a statutory requirement of 102% capitalization. Because, you know, a little extra never hurt anyone—except maybe a diet.

And what will they do with the interest from these assets, you ask? Why, fund education and infrastructure, of course! Because nothing says “we care” like a stablecoin that helps build schools and roads.

Previously, Senator Lummis championed a Bitcoin Reserve bill in Wyoming, but alas, it met its demise in Committee, much like a tumbleweed rolling across the desert. The state’s fiscal conservatives were not keen on using tax dollars for Bitcoin; will they warm up to the idea of funding stablecoin reserves? Only time will tell, and perhaps a few cups of coffee.

But let’s not fret too much. Wyoming boasts a hefty $31 billion in investments, including US Treasury bonds, not to mention its own cash reserves. Ideally, some of these assets could be funneled into the WYST project, and who knows? A small-scale success might just lead to bigger dreams. This little experiment could yield results as intriguing as a mystery novel on a rainy day.

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2025-03-27 01:46