The Bank of North Dakota, the only state-owned bank in the United States, has announced plans to introduce a state-backed stablecoin in 2026. Named the "Roughrider Coin," the digital currency will be fully backed by U.S. dollars and is being developed in partnership with financial technology company Fiserv.
The initial application for the stablecoin will be to streamline transactions between the state's community banks and credit unions. This positions North Dakota to become the second U.S. state to launch such a government-supported digital asset, following a similar initiative in Wyoming.
Key Takeaways
- The Bank of North Dakota will launch the dollar-backed "Roughrider Coin" in 2026.
- Developed with fintech firm Fiserv, it will initially be used for interbank settlements.
- The coin is named in honor of former President Theodore Roosevelt's historical connection to the state.
- The project follows Wyoming's stablecoin, signaling a trend in state-level digital finance.
- Global stablecoin market capitalization is expanding rapidly, with analysts predicting significant growth.
North Dakota's Foray into Digital Currency
North Dakota is taking a significant step into the digital finance landscape with the planned introduction of its own stablecoin. The project is a collaboration between the Bank of North Dakota and Fiserv, a major player in financial technology services.
The digital asset, named the "Roughrider Coin," pays tribute to former U.S. President Theodore Roosevelt and his volunteer cavalry regiment. Roosevelt had deep ties to North Dakota, where he lived and ranched, and was instrumental in establishing the national park that bears his name.
Governor Kelly Armstrong commented on the initiative, describing it as a "cutting-edge approach" to developing a more secure and efficient financial system for the state's institutions.
"As one of the first states to issue our own stablecoin backed by real money, the Bank of North Dakota and Fiserv are helping our financial institutions embrace new ways of moving money with the Roughrider Coin," Armstrong stated.
A Focus on Institutional Use
Unlike some digital currencies aimed at the general public, the Roughrider Coin will not be available for retail payments at its launch. Its primary purpose will be to improve the efficiency of the state's local banking system.
The stablecoin will be used for transactions between financial institutions, such as:
- Settling loans
- Facilitating overnight lending
- Processing construction advances
By using a digital asset for these processes, the state aims to make transactions faster and more secure for its network of community banks and credit unions. The Bank of North Dakota has indicated that it may explore offering stablecoin-based deposit accounts to clients in the future.
The Only State-Owned Bank in the U.S.
The Bank of North Dakota was established in 1919 and remains the only state-owned general-service bank in the United States. Its mission is to promote agriculture, commerce, and industry in the state. This unique position allows it to partner with private financial institutions rather than compete with them, making it an ideal entity to spearhead a state-level stablecoin project for institutional use.
Technology and Partnerships Powering the Coin
The Roughrider Coin will be issued using Fiserv's new FIUSD digital asset platform. This system is designed to ensure the stablecoin can work with other digital currencies in the broader financial ecosystem.
To achieve this interoperability, the platform incorporates technology from established and regulated digital asset companies, including Paxos Trust Co. and Circle Internet Group Inc., the issuer of the widely used USDC stablecoin.
Don Morgan, CEO of the Bank of North Dakota, emphasized that the project builds on the institution's long history while embracing financial innovation.
"We’re leveraging our 106-year history to stand up and be a leader in the banking and fintech space for North Dakota," Morgan said. "We see this as a development that will continue to shape the financial industry, and we’re getting involved early."
Fiserv's Chief Operating Officer, Takis Georgakopoulos, noted that the recent passage of federal stablecoin legislation has created a more supportive environment for such projects. He pointed to growing interest from major payments companies like Stripe, PayPal, Visa, and Mastercard as a sign of wider adoption to come.
The Growing Global Stablecoin Market
North Dakota's initiative is part of a much larger global trend. Stablecoins, which are digital currencies pegged to a stable asset like the U.S. dollar, have seen explosive growth as they offer a bridge between traditional finance and the digital asset world.
Market Growth Statistics
According to data from DefiLlama, the stablecoin sector added approximately $46 billion in net new issuance during the third quarter. This represents a 324% increase from the second quarter and brought the total stablecoin supply to nearly $300 billion. Major issuers like Tether, Circle, and Ethena have led this expansion.
Financial institutions are taking note of this shift. A recent report from Standard Chartered warned that over $1 trillion could move from traditional bank accounts in emerging markets into stablecoins by 2028.
The bank's analysts, Geoffrey Kendrick and Madhur Jha, projected that stablecoin holdings in these economies could increase from $173 billion to $1.22 trillion within three years. They described this potential shift as one of the most significant structural changes in modern banking.
According to the report, stablecoins function as "USD-based bank accounts" for many users in countries where access to U.S. dollars is limited, providing stability and 24/7 liquidity.
Regulatory Environment and Consumer Protection
As digital assets become more common, governments are increasing their regulatory oversight. Earlier this year, North Dakota lawmakers passed House Bill 1447 to regulate cryptocurrency ATM transactions.
The move came after residents reported $6.5 million in fraud losses related to these machines in 2023. The new law introduces licensing requirements, mandates fraud warnings, and sets daily transaction limits to better protect consumers from scams.
This dual approach of fostering innovation while implementing protective regulations reflects the careful balance that states and national governments are trying to strike in the rapidly evolving world of digital finance.
