North Dakota Launches State-Backed Stablecoin for Efficient Transfers

Roughrider Coin, backed by the U.S. dollar, primarily aims to enhance efficiency in interbank money transfers within North Dakota. Photo: Brett Buskirk/Pexels

Fiserv Inc. launched its digital-asset platform on Thursday, featuring Roughrider Coin, a stablecoin from the Bank of North Dakota. This coin aims to streamline money transfers between banks within the state.

Last June, Fiserv announced plans to develop this platform, responding to financial institutions’ increasing interest in digital assets, especially stablecoins. These assets are sought for cross-border payments, card issuance, and tokenized deposits. The partnership with the Bank of North Dakota on this coin was revealed last fall.

Roughrider Coin, backed by the U.S. dollar, primarily aims to enhance efficiency in interbank money transfers within North Dakota. VersaBank, based in London, Ontario, issues the coin, with technology provided by Fireblocks, a digital-wallet security and tokenization services company.

Fiserv believes this development will cater to the growing demand for digital assets among financial institutions. Stablecoins maintain their value during trading, unlike volatile tokens such as Bitcoin.

Aaron McPherson, owner of AFM Consulting, a payments consultancy, stated in an email, “The primary benefit [of Roughrider Coin] is an always-on settlement option that complements existing rails like Fedwire and FedNow.” He added, “While it won’t replace them and cost savings remain unproven until pilot data [are] available, the broader story is scalability. Given that Fiserv serves roughly 10,000 institutions, a successful pilot in North Dakota could easily be replicated nationwide.”

This development is expected to benefit over 90 North Dakota banks and credit unions involved in the rollout. Don Morgan, CEO of the Bank of North Dakota, stated, “The new coin provides a new tool to move money more efficiently across North Dakota’s interbank network.”

Established financial institutions have shown increased interest in digital currencies, particularly stablecoins, since the GENIUS Act was passed by Congress last year. This law established rules for reserve requirements, authorized issuers, and oversight and compliance. It also classifies stablecoins as payment instruments, distinct from securities or commodities.