The state-owned Bank of North Dakota (BND) will pilot a fully reserved, USD-pegged “Roughrider” stablecoin with Fiserv in 2026 to support bank-to-bank and merchant payments.

Strategically, this is notable because a state-owned bank issuing a reserve-backed token signals a regulatory-forward path for institutional stablecoins while leveraging Fiserv’s new digital asset platform. By building on infrastructure tied to a network that serves ~10,000 financial institutions and ~6 million merchants via Fiserv, Roughrider gains integration optionality without requiring core overhauls. Early details indicate full USD reserve backing, with blockchain selection and specific controls to be finalized ahead of the pilot, aligning with bank-grade compliance expectations.

The initiative follows Fiserv’s 2025 launch of FIUSD and its push for interoperability (including partnerships aimed at consumer-to-merchant flows), suggesting a dual-track strategy: a network stablecoin plus white-labeled, issuer-branded tokens. Near-term use cases center on real-time commercial settlement, interbank transfers, and programmable payouts under clear custodial accountability.

If successful, Roughrider could become a template for other state-affiliated or regional banks, accelerating competition among bank-grade stablecoin platforms on compliance, interoperability, and distribution reach.

Read More:
https://bnd.nd.gov/roughrider/