Bank of North Dakota unveils state-backed stablecoin with Fiserv

North Dakota’s state-owned bank has entered the digital finance arena, announcing plans to launch Roughrider Coin, a U.S. dollar-backed stablecoin developed in partnership with global payments firm Fiserv, the bank said Tuesday.

The token is scheduled to launch in 2026 and will initially be offered to banks and credit unions in the state. It aims to revolutionise money movement within the state’s financial network — much like how the internet transformed information exchange.

The Roughrider Coin will be held in parity with the U.S. dollar, thereby maintaining a stable value. It will underpin various types of financial transactions, such as interbank settlements, merchant payments, and cross-border remittances. This is the first time a state-owned bank in the U.S. has launched its own stablecoin for use within its local monetary system.

Don Morgan, the president of the Bank of North Dakota, which will operate the effort, called it a way of solidifying the state’s financial infrastructure and maintaining its relevance in an increasingly global economy. The bank’s job has always been to lend for agriculture, commerce and industry — and digital assets are among those now in that lane, he said.

The project received the support of Governor Kelly Armstrong, who described it as a “state-of-the-art approach” and part of the state’s progressive financial strategy. He insisted that the stablecoin would be “backed by real money,” ensuring trust and safety for citizens and institutions.

The Roughrider Coin is contingent upon approval from the North Dakota Industrial Commission, which regulates the state’s banking industry. When approved, pilot testing is scheduled with local financial institutions and public use is set to start in 2026.

Fiserv expands its digital asset reach

Fiserv acquired Bento a few years after it bought out CheckFree, which gives the Brookfield, Wisconsin-based company even more reach into new payments technology and digital assets.

Fiserv, a leading provider of payments and financial technology solutions, will provide the digital infrastructure for Roughrider Coin. For years, the firm has been developing its stablecoin and digital asset platform, specifically designed for banks and payment networks. 

Fiserv launched its independent white-label stablecoin, FIUSD, earlier this year, creating a way for traditional financial institutions to issue and manage digital tokens while remaining compliant with U.S. fintech regulations.

Roughrider Coin will be built on the same technology and work with other stablecoins running on Fiserv’s network. This is crucial for compatibility with various payment systems and blockchains. There are also strong compliance and anti-fraud protections built into the platform, a concern for community banks that want to upgrade while keeping themselves shielded from the risks often associated with crypto markets.

The North Dakota partnership is proof that digital money can work in tandem with brick-and-mortar banking, Fiserv executives said. As regulations evolve, we anticipate that more states and institutions will follow this direction.

Navigating opportunities and challenges ahead

The Roughrider Coin may enable banking to become more efficient and accessible, but it faces obstacles. Its acceptance will depend on how eagerly banks, merchants, and consumers adopt it in their daily business conduct. Most community banks are lagging, and caution has prevented some from participating in the blockchain-based payment marketplace.

Security remains another priority as digital currencies are susceptible to cyberattacks and system malfunctions. Fiserv’s solution specifically addresses these concerns with safeguards already in place, including fraud monitoring and data security. BND has also consented to robust monitoring and risk-management obligations.

Unlike private stablecoins, the Roughrider Coin would be overseen by a state-owned bank, something that has the potential to build trust among risk-averse users. However, it must still prove itself to be hardy and reliable in the field.

Private stablecoins like USDC and USDT already dominate the market, while companies such as PayPal and Cloudflare are offering plans to issue their own. Roughrider Coin will have to demonstrate that it offers clear advantages — such as regulatory approval, cost savings, or benefits to the local economy.

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