BISMARCK, N.D. — The Bank of North Dakota is preparing to launch the state’s first stablecoin as early as September, pending approval from state officials later this month.
The state-owned bank said it is developing a digital currency known as “Roughrider Coin,” which would be pegged to the value of the U.S. dollar and designed to streamline financial transactions between banks within North Dakota’s banking system, according to the North Dakota Monitor.
The bank plans to present an analysis of the initiative to the North Dakota Industrial Commission at its March 25 meeting. The commission, which oversees the Bank of North Dakota, must approve the project before it can move forward, the Monitor stated.
Kelvin Hullet, an executive with the bank, said part of the presentation will occur during the public portion of the meeting, while other discussions are expected to take place during a closed executive session, the Monitor reported.
How it Will Function
According to the report, the analysis will outline how Roughrider Coin would function within the state’s banking system, along with a risk assessment, safeguards and projected costs.
If the commission approves the plan, the bank expects to begin a pilot program with local financial institutions in September.
Bank CEO Don Morgan told the Monitor the project represents the bank “picking our spot” in the growing financial technology sector.
Bank officials envision Roughrider Coin being used primarily for bank-to-bank transfers, enabling transactions that currently take several days through conventional systems to be completed in minutes, the Monitor said.
As the CU Daily has reported, the initiative comes as the federal government begins developing a regulatory framework for stablecoins following passage of the GENIUS Act, signed by Donald Trump in July. Bank executives told the Monitor the law has provided regulatory clarity that could allow traditional financial institutions to explore using stablecoins.
Skeptic Speaks Up
The Monitor noted that not everyone in the financial sector is convinced stablecoins are necessary. During an event in Fargo last month, Neel Kashkari said he is skeptical they offer advantages over existing payment platforms such as Venmo and PayPal.
Kashkari said stablecoins might simplify sending money internationally, but recipients would still need to convert them into local currency.
“So, what they’re really saying is, if everybody in the world uses the same currency or the same payment platform, all these frictions go away,” Kashkari said, referring generally to stablecoins. “But all the other countries are not going to abandon their own monetary policy.”
The Bank of North Dakota also plans to highlight emerging financial technologies during its semiannual “Banking Beyond Boundaries” forums for state banking executives. The first event is scheduled for April 6–8 in Fargo and will focus on stablecoins and other digital assets, according to the Monitor.
