Wyoming Tests Instant Payments with State-Issued Stablecoin on Avalanche-Based Hashfire

Wyoming state teamed up with blockhain startup Hashfire to test how its upcoming U.S. dollar stablecoin, the Wyoming Stable Token (WYST), could be used for real-time payments for government contractors.

The pilot, which took place on Thursday, aimed to demonstrate an automated vendor agreement approval and an instant, on-chain payment using WYST through Hashfire’s Document Authentication Protocol, bypassing the state’s typical 45-day payment window.

The protocol, built on a custom Avalanche blockchain using AvaCloud’s infrastructure, allows governments and enterprises to embed approval processes, compliance rules and payment instructions directly into smart contracts.

The parties said they plan broader implementation of blockchain-based payouts with WYST later this quarter.

The test occurred as Wyoming, known for its forward stance on blockchain legislation, is preparing to roll out its U.S. dollar-backed token with U.S. stablecoin regulations forthcoming. The state created the Wyoming Stable Token Commission in 2023 to develop and issue WYST and oversee its integration into public finance.

The token, still in test phase, was slated to launch as soon as July, the commission said earlier this year.

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