Wyoming Nears First Stablecoin Launch by ‘Public Entity for the Public Benefit’

The regulations governing stablecoins — their issuance, the reserves backing them, even the use cases — remain in a state of flux. There’s no framework in place yet at the federal level, though legislation introduced earlier this month seeks to make some headway nationally.

It’s at the state level — in New York and California, for example — where frameworks, guidance and licensing efforts are actually bringing stablecoins toward widespread use. But it is in Wyoming where we may be just several months away from seeing the first issuance of fully reserved, state-specific stablecoin.

The effort’s been roughly two years in the making. In March 2023, the state Legislature passed the Wyoming Stable Token Act, creating and paving the way for the Wyoming Stable Token Commission to issue the Wyoming Stable Token (referred to, variously, in this article as a token or stablecoin), intended to fund public services.

In an interview with PYMNTS’ Karen Webster, Joel Revill, CEO Two Ocean Trust and the Wyoming Stable Token Commission’s commissioner, said the launch is slated to happen at the end of this quarter or early in the second quarter of 2025.

“This is not a currency,” Revill said, “it’s a digital expression of a fully reserved dollar … and is supportive of the U.S. dollar.”

From Policy to Implementation

A successful launch of the stablecoin, he told Webster, “would reinforce Wyoming’s position as one of the most, if not the most, forward-leaning state on digital assets — moving from policy leadership to real-world implementation.”

The knock-on effects, he said, would be plentiful, as more businesses and talent would come to the state in sectors as varied as artificial intelligence and energy and higher academia, while opening the doors for further blockchain economic development.

In addition, the state itself would see additional streams of revenue, diversifying beyond its (still rich) mineral resources, to fund schools and infrastructure projects.

The commission, he said, has been fine-tuning its stablecoin initiative in tandem with various working groups, government agency members, blockchain experts and a range of advisers.

At the moment, he said, the commission (which, in addition to Revill, includes the governor’s and state treasurer’s offices and four experts, including people with private sector stablecoin experience), is “relying on an open collaborative process” as it readies to send out RFPs to vendors to facilitate the actual launch of the stablecoin.

Other technical aspects such as smart contract audits will follow later in the process after vendor selection, said Revill, who added that “We’re working with leading audit firms in the industry to ensure that our smart contracts and our work is meeting the highest standards.”

Minimum of 102% Reserves

In terms of the mechanics of the eventual issuance, the commission has rulemaking authority, and as part of those rules has set in place a reserve management that would mandate that the token be fully backed — with a 102% minimum reserve — by U.S. dollars and Treasury bills.

“The commission will be the [stablecoin] issuer,” said Revill, who added that “The design is that it fits seamlessly into existing FinTech payment rails.”

He was quick to note that the commission is not tasked with trying to determine how the coin might ultimately be used in commerce, as market forces will determine use cases. The coins will be designed to incorporate yield, Revill said, in the event that such a feature would be demanded in some settings.

But no matter the use case, he said, the stablecoin will operate on a “more transparent, lower cost, secure payment rail vs. the … archaic payment rails that Wyoming citizens, and everyone else, are subject to.”

As stablecoins move more fully into the mainstream, Revill said, “Wyoming doesn’t want to just sort of ‘go along and make sure we’re keeping up.’ We want to lead in this area, pass laws, and set up our regulators to provide clarity that doesn’t exist yet at the federal level or in other states.”