Stablecoin fever begins, Wyoming and Fidelity join the race

Wyoming has joined the stablecoin race with plans to launch WYST, a U.S. dollar-backed token, in July, according to Governor Mark Gordon. WYST will be fully backed by U.S. Treasuries, cash and repurchase agreements, with a capitalization requirement of at least 102%.

Wyoming Governor Mark Gordon revealed at the Washington, D.C. Blockchain Summit that the state plans to launch the Wyoming Stablecoin Token (WYST) in July.

Anthony Apollo, executive director of the Stable Token Commission, said the state has formally partnered with interoperability protocol LayerZero as a token development and distribution partner.

Apollo also mentioned that WYST will be tested on seven blockchains including Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base. This would make Wyoming the first state in the U.S. to launch a fiat-backed stablecoin.

WYST will be fully backed by U.S. Treasuries, cash, and repurchase agreements, with a capitalization requirement of at least 102%, meaning the state will hold approximately $1.02 per WYST token.

Apollo said future WYST holders will also be able to transfer dollar-denominated value around the world with lower transaction fees than traditional systems like ACH or wire transfers.

“Once launched, WYST will give holders the ability to transmit USD-denominated transactions of any value almost instantly, anywhere in the world, at fees significantly lower than traditional ACH or wire transfers,” Apollo said.

Wyoming’s move adds to the growing interest in stablecoins among corporate entities and government agencies over the past month.

Asset manager Fidelity Investments has also reportedly been testing its own stablecoin, which would serve as a form of digital cash for the company. While the company has no immediate plans to launch a stablecoin, its upcoming tokenized fund could be a reason to explore stablecoins, the Financial Times reported.

Additionally, U.S. lawmakers are looking to establish clearer guidelines for cryptocurrencies, with a focus on stablecoins.

Members of the House of Representatives released the text of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE Act) on Wednesday. The bill will be amended next week, when committee members will vote on its passage.

The STABLE Act is the second of two stablecoin bills released by lawmakers this month. The Senate Banking Committee approved the Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act) proposed by Senator Bill Hagerty on March 13.

While the two bills contain very similar guidance, they emphasize different priorities.