Bank of North Dakota President and CEO Don Morgan (Oct. 27, 2025/North Dakota Monitor)
BISMARCK, N.D. (North Dakota Monitor) — The Bank of North Dakota is on track to introduce stablecoin to local banks this September after state regulators approved the technology’s use in bank-to-bank transactions on Wednesday.
Ten banks in the state have expressed interest in participating in the pilot program for the state’s planned Roughrider Coin, Bank of North Dakota CEO Don Morgan said in an interview following the North Dakota Industrial Commission meeting.
“Which is perfect because we want a wide, diverse selection so that we can fully test it out, make sure it’s working and we build a good foundation,” Morgan said.
Stablecoin is a type of cryptocurrency that can facilitate instant money transfers and streamline bank-to-bank transactions, particularly internationally. The state-owned bank’s Roughrider Coin will be available for use by North Dakota banks and credit unions.
The Industrial Commission approved a “use case” for using the Roughrider Coin in bank-to-bank transactions, Morgan said. The analysis provided to the commission during a closed-door session included how the stablecoin would be used, a risk assessment and cost projections.
The stablecoin, unlike cryptocurrencies like bitcoin, will be tied to the value of the U.S. dollar. Bitcoin, ethereum and other cryptocurrencies are available to the general public, have volatile prices and are often treated as a form of investment. They can sometimes be used for merchant transactions by members of the public.
None of that will be the case for the Roughrider Coin.
“We are not entering that space. Roughrider Coin is not a store of value. It’s not open to the public. It cannot be bought and sold. There’s no point to buy and sell it,” Morgan said. “It’s a payment mechanism.”
That payment mechanism will only be available to North Dakota’s banking system.
Morgan said the bank has concluded the risk of developing its own stablecoin is “low to moderate.” There is risk in relying on outside vendors to help build the necessary infrastructure and there is reputational risk because stablecoin is a new concept for many banks and their customers. Bank officials will continue to monitor those risks as they proceed, he said.
“On behalf of the unique North Dakota banking model, we need to deliver a solid foundation, a solid payment infrastructure that works and is safe and is controlled,” Morgan said.
The bank’s core vendor on the project is Fiserv, a Fortune 500 financial technology company the Bank of North Dakota already partners with for other services.
Morgan said officials plan to finalize contract negotiations with Fiserv on the Roughrider Coin in the near future now that they have received the green light from the Industrial Commission.
The CEO expects the Roughrider Coin to be “cost neutral,” citing the savings the bank will achieve compared to traditional transaction methods. He does not view stablecoin as a profit generator for the bank.
The use of the Roughrider Coin will be voluntary for North Dakota banks.
The governor, attorney general and agriculture commissioner make up the Industrial Commission, which oversees several state agencies in addition to the Bank of North Dakota.
Agriculture Commissioner Doug Goehring has previously urged the bank to proceed with caution with this stablecoin project. Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, expressed skepticism of stablecoins in general during a February event in Fargo.
North Dakota banks expressed cautious optimism for the Roughrider Coin’s potential when it was announced last fall.
The commission voted unanimously to move forward with the Roughrider Coin. The use case was presented to the commission during an executive session, closed to the public, and the board did not discuss the topic in public beyond a motion to approve it.
During Wednesday’s meeting, Industrial Commission members spent twice as long in confidential discussions out of the public’s eye, two hours and 35 minutes, than they did in public session, one hour and 14 minutes.
The topics listed on the agenda for the confidential portions of the meeting included WBI Energy’s Bakken East pipeline, litigation defending a CO2 storage law two judges have found to be unconstitutional, a grant applicant’s request for confidentiality, the Transmission Authority’s plan to apply for a federal grant, and a deadline extension for Minnkota’s $250 million Project Tundra loan.
The Industrial Commission cited exemptions to open meetings laws including attorney consultation, confidentiality of Bank of North Dakota records and trade secret exceptions to justify the executive sessions.
North Dakota Monitor reporter Jacob Orledge can be reached at jorledge@northdakotamonitor.com.
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