North Dakota's Roughrider Stablecoin: Digital Frontier Meets Roosevelt's Legacy

The Bank of North Dakota, the only state-owned bank in the U.S., has announced a partnership with Fiserv to launch the Roughrider stablecoin, a U.S. dollar-backed digital currency. This initiative positions North Dakota as the second U.S. state-after Wyoming-to issue a state-backed stablecoin, following the federal regulatory clarity provided by the Genius Act. The Roughrider coin, set to debut in 2026, will operate on Fiserv's digital asset platform, which also supports the company's FIUSD stablecoin. The platform, launched in June 2025, leverages Fiserv's infrastructure spanning 10,000 financial institutions, six million merchant locations, and 90 billion annual transactions.

The stablecoin aims to enhance interbank transactions, global money movement, and merchant adoption, according to a joint press release from Fiserv and the Bank of North Dakota. Initial use cases will focus on streamlining bank-to-bank transfers, enabling 24/7 settlements for loan advances, overnight lending, and construction projects. Fiserv's head of embedded finance and digital assets, Sunil Sachdev, emphasized that the coin's interoperability with other stablecoins on the platform could later expand to consumer accounts and cross-border payments. The Bank of North Dakota, with $10 billion in assets, will fully back the Roughrider coin with U.S. dollars, aligning with the Genius Act's requirements for stablecoin reserves.

The project underscores North Dakota's strategy to modernize its financial ecosystem. Governor Kelly Armstrong stated that the stablecoin reflects the state's "cutting-edge approach to creating a secure and efficient financial ecosystem," leveraging the Bank of North Dakota's 106-year history of supporting agriculture, commerce, and industry. Fiserv's COO, Takis Georgakopoulos, highlighted the integration of blockchain technology with traditional finance, noting that the initiative demonstrates how "instant, interoperable, and borderless payment systems" can redefine digital finance. The Bank of North Dakota will present a risk assessment and cost analysis to the state's Industrial Commission before a pilot launch with local financial institutions.

Regulatory clarity under the Genius Act, which exempted state-issued stablecoins from federal oversight, has been pivotal for the project's development. Seth Oranburg, a law professor at the University of New Hampshire, noted in an August Bloomberg Law column that the Genius Act allows states to experiment with stablecoins while creating "legal gray areas" due to differing regulatory standards. Morgan Lewis & Bockius attorneys further observed that federal oversight remains limited to indirect measures, such as Financial Stability Oversight Council designations, unless a state's stablecoin threatens systemic stability. Despite these uncertainties, the Genius Act has spurred state-level innovation, with Wyoming's Frontier Stable Token (FRNT) launching in August 2025.

The Roughrider coin's naming honors Theodore Roosevelt's Rough Riders, a volunteer regiment during the Spanish-American War, and Roosevelt's historical ties to North Dakota. The Bank of North Dakota emphasized that the coin's design and rollout align with the state's commitment to economic resilience and technological leadership. Fiserv's platform, which uses technology from Paxos Trust Co. and Circle Internet Group, ensures compliance with federal reserve requirements and operational transparency. The state's approach mirrors broader trends in stablecoin adoption, with global market capitalization surpassing $300 billion in Q3 2025, driven by U.S. regulatory frameworks and corporate demand.

While the Roughrider coin initially targets institutional use, future iterations may include consumer-facing features, such as stablecoin deposit accounts. Fiserv's Georgakopoulos acknowledged that challenges remain, including establishing consumer protections akin to traditional payment systems, but expressed confidence in the technology's long-term adoption potential. The Bank of North Dakota's executive vice president, Rick Geloff, noted that customers may not immediately notice changes, as the stablecoin's benefits will primarily manifest in backend efficiency for financial institutions. Meanwhile, Wyoming's FRNT token, already in a test phase, highlights the competitive landscape for state-backed stablecoins.

The launch of the Roughrider coin reflects a broader shift in U.S. financial policy, with states like North Dakota and Wyoming testing models for integrating stablecoins into regulated banking systems. As the Genius Act continues to shape the sector, the success of these initiatives could influence federal regulatory approaches and spur further innovation in digital finance.

Source: [1] Payments Dive (https://www.paymentsdive.com/news/fiserv-launches-roughrider-stablecoin-banks-crypto-north-dakota/802433/)

[2] Fiserv, Inc. (https://investors.fiserv.com/newsroom/detail/2868/bank-of-north-dakota-and-fiserv-partner-to-launch-roughrider-coin-north-dakotas-first-stablecoin)

[4] News.shib.io (https://news.shib.io/2025/10/09/north-dakota-unveils-plan-for-state-backed-roughrider-stablecoin/)

[6] Detroit News (https://www.detroitnews.com/story/business/2025/10/08/north-dakota-to-become-second-state-to-issue-stablecoin-with-roughrider-token/86584244007/)

[7] Yahoo Finance (https://finance.yahoo.com/news/north-dakota-debuts-first-state-215820420.html)

[8] KVRR (https://www.kvrr.com/2025/10/08/bank-of-north-dakota-to-launch-states-first-stablecoin-known-as-roughrider-coin/)

[9] Coinspeaker (https://www.coinspeaker.com/north-dakota-to-launch-roughrider-coin-first-us-state-backed-stablecoin-on-fiserv-platform/)

[10] Blockonomi (https://blockonomi.com/north-dakota-launches-roughrider-stablecoin-after-wyomings-debut/)