North Dakota's Stablecoin Express: Revolutionizing Bank Transactions with Roughrider Coin

North Dakota is set to become the second U.S. state to issue a state-backed stablecoin, following Wyoming's 2025 launch of the Frontier Stable Token. The Bank of North Dakota (BND), the only state-owned bank in the U.S., plans to introduce the Roughrider Coin in 2026 through a partnership with Fiserv Inc. The stablecoin, named after the volunteer cavalry regiment led by Theodore Roosevelt during the Spanish-American War, will be fully backed by U.S. dollars and leveraged for bank-to-bank transactions, such as loan advances, overnight lending, and construction paymentsDetroit News, *North Dakota to become second state to issue stablecoin with Roughrider token*^[1]. BND CEO Don Morgan emphasized the initiative's goal to enhance the efficiency of the state's financial ecosystem, stating, "We're leveraging our 106-year history to stand up and be a leader in the banking, fintech space for North Dakota"North Dakota Monitor, *Bank of North Dakota to launch state’s first stablecoin known as Roughrider coin*^[2].

The Roughrider Coin will utilize Fiserv's digital asset platform, incorporating technology from Paxos Trust Co. and Circle Internet Group Inc. to ensure compliance and security. Unlike consumer-facing stablecoins, the initial rollout prioritizes backend financial operations, with no immediate plans for public payment use. Rick Geloff, BND's executive vice president, explained that the coin will streamline transactions between banks and credit unions, reducing processing times from days to minutes. The project requires approval from the North Dakota Industrial Commission, which governs BND. Governor Kelly Armstrong, who chairs the commission, called the initiative "a cutting-edge approach to creating a secure and efficient financial ecosystem for our citizens"Cryptotimes, *North Dakota to Launch State-Backed Stablecoin ‘Roughrider’*^[4].

The stablecoin's launch aligns with the federal Genius Act, signed in July 2025, which established 80% of the regulatory framework for stablecoins in the U.S. This legislation has spurred widespread experimentation with digital assets, with companies and payment giants like Stripe, PayPal, Visa, and Mastercard expanding into the space. Fiserv's COO, Takis Georgakopoulos, noted the act's role in fostering adoption but highlighted challenges, including the need for consumer protections akin to traditional payment systemsYahoo Finance, *North Dakota To Launch “Roughrider” USD Stablecoin*^[5]. The Roughrider Coin's pilot phase will involve a small group of local financial institutions, with broader implementation contingent on risk assessments and cost projections.

The initiative reflects a broader trend of state-led innovation in digital finance. While Wyoming's FRNT token focuses on public transactions, North Dakota's approach emphasizes institutional efficiency. Geloff acknowledged that stablecoins are more widely adopted in countries with volatile currencies but emphasized the potential for lower transaction fees to drive future adoption in the U.S. Merchants could benefit from reduced costs compared to credit or debit card processing, creating incentives for broader acceptanceNorth Dakota Monitor, *Bank of North Dakota to launch state’s first stablecoin known as Roughrider coin*^[7].

Despite its cautious rollout, the Roughrider Coin represents a strategic response to evolving financial technology. BND's chief business development officer, Kelvin Hullet, compared the initiative to early internet adoption, stating the bank aims to "bring our local financial institutions along as the train leaves the station". As the U.S. stablecoin market grows-reaching $304 billion in market capitalization as of October 2025, led by Tether's USDT-North Dakota's project underscores the shift toward institutional-grade digital assetsCryptotimes, *North Dakota to Launch State-Backed Stablecoin ‘Roughrider’*^[9].