Wyoming Introduces State Backed Stablecoin on 7 Blockchains

The token has already been deployed on the Arbitrum, Ethereum, Base, Avalanche, Solana, Optimism, and Polygon networks, blockchain data on the project’s website shows. The token is designed to be 2% over-collateralized, backed by U.S. dollars and short-duration U.S. treasuries held in trust. The token will be available for the broader public in the coming days on Solana through Wyoming-domiciled exchange Kraken and Rain’s Visa-integrated card platform on the Avalanche blockchain, the press release said.

The announcement, coincided with the Wyoming Blockchain Symposium conference in Jackson Hole, Wyoming, follows the U.S. enacting federal laws with the GENIUS Act to regulate the fast-growing stablecoin sector and issuers. Stablecoins are a $260 billion class of cryptocurrencies with prices tied to an external asset like the U.S. dollar. They could become a trillion dollar market in the next few years and disrupt payments flows as adoption in the real economy expands, crypto trading firm Keyrock projected in a recent report.

Wyoming, known for its forward stance on blockchain legislation, created the Wyoming Stable Token Commission in 2023 to develop and issue a U.S. dollar-backed token and oversee its integration into public finances. Last month, the state conducted a test transaction for real-time government contractor payment on the Avalanche-based Hashfire. The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations, all selected through a procurement process, the press release said.