Governor Mark Gordon Announces Launch of Stablecoin “WYST” in July
On March 27, Wyoming Governor Mark Gordon announced at the Washington Blockchain Summit that the state government plans to issue its stablecoin “WYST” in July this year, making it the first stablecoin launched by a state government, based on the U.S. dollar and backed by U.S. Treasury securities.
Targeting July Launch, WYST Will Be the First Officially Issued Stablecoin in the U.S.
Gordon stated that WYST will be dollar-based and will maintain a reserve of 2% to ensure asset safety, fully backed by the following assets:
- U.S. Treasuries
- Cash
- Repo Agreements
The state government plans to earn interest from the reserve assets, focusing on education and infrastructure. Unlike general issuers who profit from transaction fees, Wyoming intends to use the interest from reserve assets as a revenue source, with future allocations for:
- Education expenditures
- Infrastructure
- Supporting the development of local agricultural and livestock markets
Stablecoin Issuance Expands Wyoming’s Economic Base
Wyoming has traditionally relied on coal, oil, and other conventional energy industries for local revenue, and the issuance of a stablecoin will allow the state to diversify its economic sources.
Solana, Ethereum, and Polygon Under Consideration
The Wyoming government is currently evaluating which blockchain to issue WYST on, with candidates including:
- Solana
- Ethereum
- Polygon
Governor Invited JP Morgan CEO to Participate in Local Crypto Industry Development
Governor Gordon revealed that he had previously discussed stablecoins with JP Morgan CEO Jamie Dimon, stating, “If you really want to create a stablecoin, you should come to Wyoming, where there is a complete regulatory framework.”
Wyoming’s Efforts in Crypto Legislation Yield Limited Returns
Wyoming has been actively building a “crypto-friendly” image, having passed 45 cryptocurrency-related laws since 2016, attracting over 1,000 crypto businesses to register in the state. However, the actual results have been underwhelming; in 2023, Wyoming invested $2 million in various crypto projects but only recouped approximately $47.3. Earlier this year, the state legislature even rejected a proposal to establish a state-level crypto reserve fund, citing “too high risks.”
Risk Warning
Investing in cryptocurrencies carries a high level of risk, with prices potentially experiencing significant volatility. You may lose your entire principal. Please carefully assess the risks involved.