For almost a decade, the state of Wyoming has been courting emerging crypto technologies. One of those technologies includes pioneering a fully fiat-backed digital asset pegged to the U.S. dollar. Now, those efforts are close to paying off as the Wyoming Stable Token Commission has its sights set on a July 4 launch date. Until then, the token is undergoing testing in what the state calls an alpha program.
Token updates
In March, Gov. Mark Gordon and Executive Director of the Wyoming Stable Token Commission Anthony Apollo were in the nation's capital, speaking at the D.C Blockchain Summit.
“We have a bit of an exciting announcement to make here as of today.” said Apollo. “The Stable Token Commission has formally engaged LayerZero as our token development distribution partner.”
LayerZero is a blockchain protocol developed by LayerZero Labs. Apollo said the commission is also actively testing on Ethereum, Avalanche, Solano, Polygonal, Base, Optimism and Arbitrum blockchains as well.
Blockchain is the peer-to-peer system that allows for the 24/7 direct exchange of digital currencies between users with digital wallets. Different companies create different types of blockchains for different purposes, like the creation of a specific token, or as some have proposed, tracking election votes or land exchanges.
Gordorn expressed his excitement for the upcoming launch, saying that he’s had fun hearing people say, "We're looking at you Wyoming, it's really amazing what you're doing." The governor has been a part of the project since the Legislature took up a number of crypto-related bills in 2016.
He recalled a former lawmaker who was suspicious of the technology, and how much has changed since then.
“I know one of our neighbors, who happened to be a legislator a few years ago, was saying, ‘I don't know if I like that blockchain stuff because it's chains hook to blocks and they go from here clear to China!’” said Gordon. “And now today, it's almost like we've had too much success.”
The governor went on to briefly speak about the future potential of digital assets, saying they could peg real-world assets like petroleum to a token. Before any of that can happen however, the Stable Token Commission will have to finish its alpha test phase.
Alpha Program
Apollo said the tokens aren’t ready for everybody just yet. It’s currently undergoing alpha testing – basically, a stress test of the asset in a trial run program.
Apollo said the Alpha Program welcomes more experienced crypto users to participate. The goal is to test out the token and the systems on which it will operate, and build the necessary guides for the broader public upon release.
“We are looking for people who are knowledgeable of the topic, but again, that will help us as we move forward. Put together things like frequently asked questions or [a] how-to guide that will make things highly self-explanatory, so that people should be able to kind of just follow the steps in front of them,” said Apollo.
The token currently being used in the trial run has no value and acts more as a technical test vehicle. Apollo said they didn't want to release the token without it being “thoroughly stress tested.” Additionally, Apollo said they're looking for ways to ensure “privacy preserving mechanisms.”
Often, people choose to operate on a blockchain instead of a bank for the anonymity and security that blockchains purport to provide. However, Apollo said there also have to be ways to ensure tokens don’t end up in the hands of “ nefarious actors like Hamas, like the Lazarus group in North Korea.”
Apollo said getting to this point by the end of the first quarter is a “fairly big deal.” As of now, the commission is eyeing a July 4 release date to keep all blockchain activity in the state’s 2026 fiscal year. The date is also a bank holiday, which the commission chose as a way to show the versatility of the token.
“ I'd like to demonstrate is that if banks are closed on July 4th, and we have Wyoming stable tokens available, you are still able to transact quite rapidly,” said Apollo.
HOW CAN PEOPLE GET INVOLVED IN ALPHA TEST – include a link and instructions.
Monitoring the volatility
During the D.C. summit, Gordon talked about the token’s background, and why he had vetoed efforts to create one early on.
“I vetoed it because we didn't have the back office and we didn't have the backend, I thought, to be able to make sure that it was going to be a fully backed, reserve-backed fiat uh token,” he said.
Stable tokens are generally backed by cash and cash agreements. In the case of the Wyoming Stable Token, it’s short-term U.S. Treasury bonds.
“We're hoping that by backing this with short-term Treasuries and repos, etc., that we'll be able to demonstrate not only the liquidity necessary to meet any kind of volatility calls, but also just a practical implementation of this as a tool,” Gordon said.
Foreign investors hold over $8 trillion in Treasury bonds. Private investors hold over $4.5 trillion.
Apollo said the stable token is “not an investment vehicle,” just a digital dollar “you can spend in a more efficient way.” He added that stable tokens are significantly less volatile than digital currencies like Bitcoin.
Regardless, the commission is monitoring interest rate changes.
“ We're keeping a very close eye on the interest rates because we're purchasing Treasuries to back these tokens. Those are gonna bear some amount of interest,” said Apollo. “Interest rates are going up in this time of volatility. There could be slashes to the interest rate function overnight. It could continue to go up. We don't quite know these kind of unprecedented times, but we are keeping a very close eye on that as well.”
Ultimately, the state would collect on the interest born by holding U.S. Treasuries. That interest would be funneled into the Wyoming Schools Foundation Fund.
Apollo hopes to see a plethora of users, in and out of state, participate once the stable token goes live.
