Emily Walker
Charles Hoskinson, the creator of Cardano, has voiced his disappointment with the recent choices made by the Wyoming Stable Token Commission regarding its blockchain network for the upcoming Wyoming Stable Token (WST). During a livestream on November 25, 2024, Hoskinson questioned the commission’s lack of transparency in the selection process and pointed out possible conflicts of interest.
The Wyoming Stable Token Commission has begun the procurement process for WST, which is slated for launch in 2025 as the first stablecoin in the U.S. backed fully by fiat and reserves. The commission plans to work with qualified vendors to assist in the creation, deployment, and management of WST and its reserves.
The chosen blockchain platforms for the initial roll-out include Solana, Avalanche, Stellar, and Ethereum, along with various Layer 2 networks like Polygon, Arbitrum, Base, and Optimism. The commission’s Blockchain Selection Working Group determined these choices, which Hoskinson criticized as “very opaque.”
Collaboration Between Cardano and XRP Community
Hoskinson expressed confusion over the absence of well-known blockchains such as XRP Ledger and Cardano from the selection list. He pointed out Ripple’s RLUSD and questioned Stellar’s qualification, given their shared background and Ripple’s significant market presence.
“To clarify, it seems Stellar is being favored over Ripple based on the criteria,” Hoskinson stated. “Ripple just debuted the RLUSD, and XRP boasts a market cap of $84 billion with nearly $12 billion in trading.”
Cardano, which features a market cap of $34 billion and a trading volume of $3.2 billion, was also omitted. Other notable exclusions included Algorand, Tezos, and Aptos. Hoskinson lamented the exclusion of numerous capable ecosystems that were not given an opportunity to propose concepts.
Hoskinson speculated that the selection process might have been swayed by the past connections of certain commission members. He pointed out that Anthony Welfare, the Executive Director of the Wyoming Stable Token Commission, has previously worked with ConsenSys and in the Polygon ecosystem.
“It’s as if ConsenSys and Ripple aren’t on good terms, isn’t it?” he remarked. Additionally, he mentioned one commissioner’s ties to Circle, a stablecoin company known for USDC. “It’s interesting to see that all the chains chosen seem to be Circle networks.”
Hoskinson suggested that the selections lean towards networks connected to Circle and ConsenSys, potentially giving them an unfair competitive edge. “Using public funds to benefit specific companies and ecosystems while presenting it as an open process is unacceptable,” he argued.
The commission was criticized for not adhering to standard procurement practices, which generally include outlining product requirements and allowing interested parties to submit proof of concepts. Hoskinson contended that the process was not transparent and afforded no chance for excluded networks to showcase their capabilities.
“Unclear processes won’t foster a good relationship with the government,” Hoskinson declared. “We didn’t even have a chance to bid; we were completely excluded.”
He suggested the exclusion could have legal repercussions, indicating, “There might be grounds for a class action since those excluded have standing. This situation creates an unfair advantage for the selected chains and a disadvantage for those not picked.”
Hoskinson also noted that Bitcoin, the most valuable cryptocurrency, was left out. He mentioned Cardano’s collaboration with Bitcoin OS (BOS), which could have enabled Bitcoin to launch its first stablecoin through WST.
“Due to Cardano’s partnership with BOS, we created a chance for Bitcoin to establish its first stablecoin,” he explained. “However, the commission decided to exclude Bitcoin, the leading cryptocurrency, especially when the incoming president, Trump, is considering creating a strategic reserve for it.”
Hoskinson called on the XRP community to take action on the matter. “XRP community, you know the steps to take, and we do too,” he insisted. “We will rectify this situation one way or another.” He underscored the necessity for fair and transparent processes in government-related cryptocurrency endeavors.
“We have no patience for these practices anymore,” Hoskinson maintained. “Things are evolving in 2025, and unclear processes won’t define our relationship with the government going forward. We will assess qualifications ourselves and disclose the results.”
As of the latest update, ADA is priced at $0.9785.