Why It Matters
The state-owned bank is testing blockchain-based payment rails to modernize interbank transfers while maintaining strict regulatory oversight.
What Happened
The Bank of North Dakota announced a pilot program for Roughrider Coin on Monday in Medora, N.D. The initiative involves four local banks and credit unions partnering with the state-owned institution to test stablecoin technology. Fiserv, a Fortune 500 technology company, is part of the partnership providing services for the bank.
Roughrider Coin is a branded stablecoin tied to the U.S. dollar value, using blockchain technology. The pilot program tests bank-to-bank transactions in a controlled environment; it is not available to the general public or merchants. Participants view the pilot as a learning opportunity to prepare for future financial technology phases.
Don Morgan said, “The way money moves is drastically changing, and we are utilizing our incredibly powerful financial tool to be on the forefront of that change.”
By the Numbers
Four — Number of local banks and credit unions participating in the pilot.
$1 — Value of one unit of stablecoin, pegged to the U.S. dollar.
$1.10 — Example value cited to illustrate that stablecoins do not fluctuate like other cryptocurrencies.
13 — Number of locations for North Star Community Credit Union.
A penny — Amount moved in the first live transaction outside a test environment.
Zoom Out
The announcement occurred during a three-day forum for banking leaders at the Theodore Roosevelt Presidential Library. Internal and external risk assessments concluded the initial Roughrider Coin program is low risk. Bob Herrington explained, “Stablecoin at its very foundation is pegged to the dollar, and $1 of stablecoin is going to be worth $1.”
What’s Next
The Bank of North Dakota completed its first live transaction outside a test environment by moving a penny almost instantly between two partners. The participating institutions include Gate City Bank, First International Bank, Capital Credit Union, and North Star Community Credit Union. Officials Ryan Goellner and Karl Bollingberg were also mentioned in connection with the announcement.