Stablecoin mania kicks off as Wyoming and Fidelity join the race
- Wyoming plans to launch the WYST stablecoin in July, becoming the first US state to issue a digital token.
- Fidelity Investments is also reportedly testing its stablecoin as more firms race toward launching digital assets.
- US legislators reveal the full text of the STABLE Act with its markup set for next week.
According to Governor Mark Gordon, the state of Wyoming has joined the race for a stablecoin, following plans to launch WYST, a US Dollar-backed token in July. WYST will be fully backed by US Treasuries, cash, and repurchase agreements, with a capitalization requirement of at least 102%.
State of Wyoming to issue Dollar-backed token amid lawmakers' quest for stablecoin regulation
Wyoming Governor Mark Gordon revealed at the DC Blockchain Summit that the state plans to launch a Wyoming Stablecoin Token (WYST) in July.
Anthony Apollo, executive director at the Stable Token Commission, stated that the state formally engaged interoperability protocol LayerZero as the token development distribution partner.
Apollo also mentioned that WYST will launch a test run on seven blockchains, including Ethereum, Solana, Avalanche, Arbitrum, Optimism, Polygon, and Base. This would make Wyoming the first state to launch a fiat-backed stablecoin in the US.
WYST will be fully backed by US 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 stated that future WYST holders would also be able to transfer dollar-denominated value worldwide, with lower transaction fees than traditional systems like ACH or wire transfers.
"Once launched, WYST will grant holders the ability to transmit dollar-denominated transactions of any value, anywhere in the world, nearly instantly, with significantly reduced fees compared to traditional ACH or wires," Apollo stated.
Wyoming's move adds to the rising interest in stablecoins among corporate entities and government bodies in the past month.
Asset manager Fidelity Investments is also reportedly testing its own stablecoin, which would serve as a form of digital cash for the company. While the firm doesn't have immediate plans to launch the stablecoin, its upcoming tokenized fund could be the reason for exploring stable tokens, reported Financial Times.
Additionally, US lawmakers are seeking to establish clearer cryptocurrency guidelines with a focus on stablecoins.
House of Representatives members released the text for the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act on Wednesday. The bill will undergo a markup next week, during which committee members will vote on its passage.
The STABLE Act is the second of two stablecoin bills that lawmakers have released this month. The Senate Banking Committee approved the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, issued by Senator Bill Hagerty, on March 13.
While both bills contain very similar guidelines, they emphasize different priorities.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
