Wyoming Tests Stablecoin Payments for Government Contracts with Hashfire

Wyoming has partnered with blockchain startup Hashfire to pilot real-time payments using its upcoming U.S. dollar-backed stablecoin, the Wyoming Stable Token (WYST). The trial, conducted on Thursday, aimed to streamline payments for government contractors by replacing the state’s standard 45-day payout window with instant, on-chain transactions.

The test utilized Hashfire’s Document Authentication Protocol, which automates vendor agreement approvals and embeds payment terms directly into smart contracts. Built on a customized Avalanche blockchain through AvaCloud infrastructure, the system enables governments to enforce compliance, approvals, and payments programmatically.

Wyoming, a leader in blockchain legislation, established the Wyoming Stable Token Commission in 2023 to oversee the development and issuance of WYST. The token remains in its testing phase but is expected to officially launch soon, potentially within July. The pilot reflects the state’s broader push to modernize public finance and leverage blockchain for efficiency and transparency.

The WYST pilot marks a notable milestone as U.S. regulators advance stablecoin frameworks. Wyoming’s proactive stance sets it apart from other states, demonstrating real-world utility for digital dollar equivalents in government operations. Hashfire and state officials plan to expand blockchain-based disbursements later this quarter, highlighting growing momentum for stablecoin adoption in public sector finance.

With U.S. stablecoin regulation on the horizon, Wyoming’s early move positions WYST as a potential model for compliant, blockchain-based payment systems. The pilot not only showcases state-level innovation but also serves as a testbed for national digital currency infrastructure.