North Dakota's Roughrider Coin: Pioneering a New Frontier in State Finance

North Dakota is set to become the second U.S. state to issue a state-backed stablecoin, following Wyoming's initiative, with plans to launch the Roughrider Coin in 2026. The Bank of North Dakota (BON), the sole state-owned bank in the U.S., will develop the USD-backed digital asset in partnership with Fiserv Inc., a Fortune 500 fintech firmNorth Dakota plans to launch the Roughrider Coin, a USD-backed stablecoin, in 2026^[1]. The coin is designed to facilitate secure, rapid interbank lending and streamline financial transactions, marking a step toward broader blockchain adoption in public finance sectorsBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2].

The project aligns with the 2025 Genius Act, a federal law that established 80% of the regulatory framework for stablecoins, providing clarity and safeguards for institutional adoptionNorth Dakota to become second state to issue stablecoin with Roughrider token^[3]. BON officials emphasized that the Roughrider Coin will initially be used for back-end operations, such as loan advances, overnight lending, and construction financing, rather than direct consumer transactionsBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2]. This approach mirrors Wyoming's Frontier Stable Token, which focuses on public-facing use, but North Dakota's stablecoin will prioritize institutional efficiencyNorth Dakota to become second state to issue stablecoin with Roughrider token^[3].

Testing of the Roughrider Coin is contingent on approval from the North Dakota Industrial Commission, which oversees the state bank. If approved, a pilot project will involve collaboration with local banks and credit unions to assess the technology's integration into existing systemsBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2]. Rick Geloff, BON's executive vice president, noted that the coin could reduce transaction times from days to minutes, enhancing liquidity and operational resilience for the state's financial institutionsBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2].

The name "Roughrider" honors the volunteer military unit led by President Theodore Roosevelt during the Spanish-American War, a nod to the state's historical ties to the figure. While the stablecoin will not be directly accessible to consumers in its initial phase, officials acknowledged potential future applications, such as retail payments, if businesses adopt it to lower transaction costsBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2]. Dan McGonegle of Crowe, a financial consulting firm, highlighted that stablecoins could reduce fees for merchants compared to traditional card payments, potentially accelerating adoption if incentives are structured effectivelyBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2].

The initiative reflects broader trends in the U.S. financial system, where over 50 stablecoins are now issued by companies following the Genius Act's passage. Fiserv's involvement, leveraging technology from Paxos and Circle, underscores the growing collaboration between traditional financial institutions and blockchain platformsNorth Dakota to become second state to issue stablecoin with Roughrider token^[3]. However, challenges remain, including the need to establish consumer protections comparable to those offered by legacy payment networks. Takis Georgakopoulos, Fiserv's COO, acknowledged that regulatory hurdles and market education will be key to long-term adoptionNorth Dakota to become second state to issue stablecoin with Roughrider token^[3].

By positioning itself as an early adopter, North Dakota aims to strengthen its financial ecosystem's competitiveness while mitigating risks associated with digital assets. Governor Kelly Armstrong emphasized the state's commitment to innovation, stating that the Roughrider Coin represents a "secure and efficient financial ecosystem for our citizens." The project also aligns with BON's century-long mission to support agriculture, commerce, and industry through financial partnershipsBank of North Dakota to launch states first stablecoin known as Roughrider coin^[2].