Bank of North Dakota (BND) has launched Roughrider Coin, a U.S. dollar-backed digital token that lets the state’s community banks and credit unions settle payments with each other in near real time.
A stablecoin, for the uninitiated, is a digital token pegged to a regular currency, here the U.S. dollar. Roughrider Coin isn’t a free-for-all crypto token, though. It runs inside a closed network of approved institutions, plugs into existing payment operations, and is meant for routine bank-to-bank transfers. Think less Wild West, more members-only club with a very thorough doorman.
Who built it, and who tested it
Four North Dakota financial institutions partnered with BND to validate the use case. Two of them are credit unions: Capital Credit Union in Bismarck and North Star Community Credit Union in Maddock. The others include First International Bank & Trust and Gate City Bank.
The technology came from a team of partners:
- Fiserv supplied the digital asset platform and the banking integration.
- VersaBank USA handled regulated custody and issuance for fiat-backed digital assets.
- Solana provided the high-performance blockchain infrastructure behind the permissioned operations.
Together, they validated the speed, security, auditability and bank-grade controls. BND President and CEO Don Morgan said the project “reflects the strength of North Dakota’s financial community working together.”
North Dakota is now among the first U.S. states to operationalize a dollar-backed stablecoin for financial institutions, all within a defined governance and compliance framework.
Why the participants signed up
For the credit unions, getting a seat at the table mattered as much as the tech. Dakota Credit Union Association (DakCU) President and CEO Joe Keller said it lets credit unions understand the technology “from the inside, ask the right questions, and help shape what the future of payments could look like” for members.
Capital CEO Jon Griffin said member expectations keep changing, and the credit union has to change with them. He credited BND for investing significant time, resources and expertise, and said its transparent approach built confidence for what’s ahead.
North Star CEO Bob Herrington framed it as learning together and bringing a credit union perspective to the product. North Star wants to adopt new technology in a timely, responsible way when it offers practical value, with member trust at the center. He also borrowed from Theodore Roosevelt, a fitting North Dakota touch: “The credit belongs to the man who is actually in the arena.” North Star, he said, is proud to have been in the arena with BND from the earliest testing.
The bank side echoed the caution. Peter Stenehjem of First International Bank & Trust pointed to the bank’s 2018 acquisition of Kotapay as groundwork for this kind of move, and called Roughrider Coin an additional payment rail for future uses where blockchain delivers real value. Gate City Bank’s Ryan Goellner, EVP and CIO, liked that it’s a bank-governed program in a controlled network, not an open crypto environment. Governance, compliance, screening, approval and oversight processes are all defined, and only approved institutions and users can take part.
What’s next
The pilot is done, and the coin is moving toward broader availability. Use is voluntary and open to all of the state’s financial institutions. Access will expand in phases so onboarding and the user experience can keep pace. DakCU says it will keep supporting the collaboration between BND and the state’s credit unions.
If you bank at a North Dakota credit union or community bank, you won’t need to buy or hold anything. The change happens behind the scenes, in how your institution moves money to others. The goal is faster, more efficient settlement, with the local relationships you already count on left intact. Your institution may opt in over the coming months, and it’s worth asking what it plans to do.