- In a first, the state of Wyoming will launch its own dollar-backed stablecoin.
- Competing blockchains are vying to support the new Wyoming State Token (WST).
- Charles Hoskinson alleged Cardano was unfairly excluded.
Before Donald Trump’s recent pro-crypto push, Wyoming was already leading the charge as one of the most crypto-friendly states, thanks to its progressive tax policies and initiatives to support the digital asset industry.
Building on its pro-crypto reputation, Wyoming introduced the Wyoming Stable Token (WST) Act in January 2023, aiming to launch a dollar-backed stablecoin by early 2025. However, Input Output (IO) CEO Charles Hoskinson has revealed that Cardano has been excluded from supporting the project.
Concerns Raised Over Tender Process
The WST project was initially pitched as a move to accelerate stablecoin payments under the backing of a US state. While Cardano and its developers at IO were involved in the early stages, Hoskinson recently revealed that the blockchain had been excluded from the final phase of the project.
Sponsored
Hoskinson said IO played a crucial advisory role in the project’s development, helping shape its concept, technical standards, and compliance framework over hundreds of meetings.
However, the project’s trajectory shifted when an executive director was hired. The director reportedly pushed for the token to be Ethereum-based, contrary to the bill’s original intent for a multi-chain solution.
Hoskinson explained that the tender process, which allowed developers to build prototypes demonstrating their ability to meet the project’s requirements, was abandoned. Instead, the committee and executive director evaluated each blockchain, relying on subjective judgments without public input or opportunities for rebuttal.
Cardano Misses Out
This approach led to Cardano being excluded from the shortlist, with the commission citing a lack of “certain capabilities,” a claim Hoskinson disputes, arguing that Cardano never got the chance to demonstrate its suitability as it could not submit a prototype.
Summing up, Hoskinson described the shortlisting process as “illegal and unconstitutional,” arguing that the committee and executive director bypassed proper procurement procedures, resulting in a subjective and flawed evaluation of blockchains for the WST project.
According to Mysten Labs co-founder Evan Cheng, the shortlisted blockchains included Solana, Avalanche, Sui, Stellar, Ethereum, and other EVM-compatible chains. However, the source Cheng cited is no longer accessible, leaving the final selection process shrouded in further controversy.
While Hoskinson did not elaborate on IO’s next steps, he hinted at potential action, stating the firm “will pursue options at our discretion.” He also suggested the flawed tender process has raised questions about whether the entire project should be scrapped.
On the Flipside
- WST’s executive director is Anthony Apollo, who worked at Ethereum devs ConsenSys between 2017 and 2018.
- WST is the first attempt by a public body to compete with private cryptocurrency firms.
- A US state-backed stablecoin may appeal more to crypto-skeptics.
Why This Matters
The WST controversy exposes a familiar pattern in government contracts, where public funds and promises of innovation often serve the interests of insiders.
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