Image by Ledger Insights
The state of Wyoming is planning to launch a US dollar backed stablecoin, WST, in the first quarter of 2025. While this is breaking news, the project has been in the works for some time. In March the state passed the Wyoming Stable Token Act, which the governor signed into law the same month.
When we first heard of the stablecoin, we wondered whether Wyoming Municipal bonds would form part of the reserves and assumed the target was for payments within the State. However, the aim is usage throughout the United States and the bonds will be backed by cash, US Treasuries and reverse repos.
The legislation stipulates that the Treasuries can’t be more than 365 days in maturity, which is longer than the typical 90 days. The longer the maturity, the more the bond value can fluctuate owing to interest rate changes. There’s still nothing stopping them from sticking to 90 days.
Retrieved from: https://www.ledgerinsights.com/state-of-wyoming-plans-stablecoin-issuance/
