BISMARCK — The Bank of North Dakota and its core banking services provider, Fiserv, announced a partnership Wednesday, Oct. 8, to develop the state’s own stablecoin, which will be called the Roughrider coin.
“A stablecoin is a cryptocurrency whose value is designed to be stable, typically by being pegged to a fiat currency like the U.S. dollar. On paper, they aim to offer the benefits of cryptocurrency — high-speed, low-cost and decentralized transactions — with the stability of traditional assets.”
Fiserv COO Takis Georgakopoulus said stablecoins allow for essentially instantaneous transactions as compared to existing options like wire transfers and ACH transfers.
Wire transfers can typically be accomplished in the same day. ACH transfers can take 1-3 business days to complete.
Making the announcement during an event held at Bismarck State College, Bank of North Dakota President and CEO Don Morgan said the Roughrider coin will be developed in the new financial environment created with the passage of the GENIUS Act, which establishes a framework for payment stablecoins by requiring they be backed with high-quality assets, as opposed to more volatile cryptocurrencies, such as Bitcoin.
Initially, Morgan said, the Roughrider coin will be used for things like bank-to-bank movement of money using Fiserv’s digital assets platform.
Eventually, he added, the Roughrider coin could be used for other types of transactions, though he did not go into details.
When the Bank of North Dakota takes future steps, Morgan said, it will do so “diligently, thoughtfully, step by step. We’ve operated that way for 100 years.”
Georgakopoulus said that by developing its own stablecoin, North Dakota will have greater say in how it may be used compared to going with an established stablecoin.
“The moment you go with any of the existing coins, you have to live with their rules. You are intermingled with all of their other clients,” Georgakopoulus said.
“Banks are different,” he added. “You want to be able to set your own rules, and there is a whole host of capabilities you can bring to the table that you wouldn’t be able to do if you went with an established provider.”
He said one area of flexibility relates to the custody of real assets that are moved to stablecoins and how those deposits might be shared between banks “in ways you guys decide make sense.”
State officials said the Roughrider coin will be available to banks and credit unions in North Dakota in 2026.
Following the Roughrider coin announcement, the North Dakota Industrial Commission, which oversees the Bank of North Dakota, issued a statement applauding the development.
“As the only state-owned bank in the country, BND has charted its own path numerous times over the last 106 years to benefit North Dakota residents. This is the next chapter in its financial innovation story,” the statement said.
“The Roughrider coin is a cutting-edge approach to improving efficiency and quality control in the banking sector, a direct benefit for our residents,” the statement said.
The Industrial Commission consists of North Dakota Gov. Kelly Armstrong, Attorney General Drew Wrigley and Agriculture Commissioner Doug Goehring.
In announcing the new coin, officials stressed that in addition to requiring that stablecoins be backed with high-quality assets, the GENIUS Act also requires things like mandated disclosures and audits, ensured reserve transparency and rules for permitted users.
