North Dakota Bridges Blockchain and Banking with Ag-Focused Stablecoin

North Dakota's state-owned Bank of North Dakota (BND) is set to launch the nation's second state-backed stablecoin, the "Roughrider Coin," in 2026. The initiative, developed in partnership with financial technology firm Fiserv, aims to streamline bank-to-bank transactions and support agricultural lending within the state. The stablecoin will be fully backed by U.S. dollars and operate on Fiserv's digital asset platform, leveraging technology from Paxos Trust Co. and Circle Internet Group Inc. The move positions North Dakota as a leader in integrating blockchain technology into traditional banking systemsStablecoin News: Bank of North Dakota to Launch Digital^[1].

The Roughrider Coin is designed to facilitate faster and more cost-effective transfers between North Dakota's 80+ community banks and credit unions. Initial use cases include loan advances, overnight lending, and construction funding, with potential future expansion to consumer-facing applications if demand arises. BND President Don Morgan emphasized the project's alignment with the bank's century-old mission to support the state's agricultural and economic infrastructure. "We're leveraging our 106-year history to stand up and be a leader in the banking, fintech space for North Dakota," Morgan statedNorth Dakota to become second state to issue stablecoin with ...^[2]. The stablecoin will require approval from the North Dakota Industrial Commission, which oversees BND, before a pilot program can commenceBank of North Dakota to launch state’s first stablecoin known as ...^[3].

The project follows the passage of the federal GENIUS Act in July 2025, which established a regulatory framework for stablecoins and spurred broader adoption across the U.S. The law has enabled states like Wyoming to experiment with stablecoin initiatives, including its Frontier Stable Token, currently in a test phase. Fiserv, which processes 90 billion transactions annually for financial institutions, has positioned itself as a bridge between traditional finance and blockchain, citing the GENIUS Act as a catalyst for innovation. "Congress has now put a framework around this. The train is leaving the station, and we need to be not only on the train but bring our local financial institutions along with us," said Fiserv's Kelvin HulletFact Sheet: The President’s Working Group on Digital Asset …^[4].

Governor Kelly Armstrong highlighted the initiative as a step toward modernizing North Dakota's financial ecosystem. "As one of the first states to issue our own stablecoin backed by real money, North Dakota is taking a cutting-edge approach to creating a secure and efficient financial ecosystem for our citizens," Armstrong saidNorth Dakota to become second state to issue stablecoin with ...^[2]. The stablecoin's development reflects a broader trend of U.S. states exploring digital currencies to enhance transaction efficiency and reduce costs. For instance, Wyoming's Frontier Stable Token is marketed for public use, while North Dakota's focus remains on institutional applications for nowBank of North Dakota to launch state’s first stablecoin known as ...^[3].

Challenges remain, particularly around consumer protection and regulatory alignment. While Fiserv's Georgakopoulos expressed optimism about stablecoin adoption, he noted that hurdles such as defining consumer safeguards-akin to those offered by traditional payment networks-must be addressed. Additionally, the Bank of North Dakota has emphasized that the Roughrider Coin will not drain deposits from local banks, a concern raised by some industry stakeholders. Rick Clayburgh of the North Dakota Bankers Association acknowledged the potential benefits of stablecoins but cautioned that risks, such as deposit outflows, require careful managementBank of North Dakota to launch state’s first stablecoin known as ...^[3].

The project underscores the growing intersection of blockchain and traditional finance, driven by regulatory clarity and technological advancements. As North Dakota prepares to launch its stablecoin, the state joins a wave of innovation that could reshape financial infrastructure nationwide.