Another state is getting into the stablecoin game.
On the heels of Wyoming issuing the Frontier Stable Token (FRNT), we now have North Dakota going down the same path. It is partnering with FiServ to offer the token starting in 2026.
Will this become part of a broader trend. We see the stablecoin market starting head down many different avenues. A few state governments are getting serious about the potential, seeking to bring greater control over money to their citizens.
For North Dakota, it draws on the history of Theordore Roosevelt and the Roug Rriders. According to the Bank of North Dakota, the goal is:
the Roughrider coin will aim to increase bank-to-bank transactions, encourage global money movement, and drive merchant adoption.
It is a common narrative across much of the stablecoin space.
North Dakota Issuing Roughrider Stablecoin
The design of this token is the same as others. We are looking at an asset backed currency, with highly liquid securities being used. The goal it to bring the state into the modern age of finance, one that has blockchain at the core.
Faster and more efficient payments are the root of the entire movement. Simply put, the traditional financial system is too slow. It was developed during a time when technology was embryotic. Now, with more than a decade of infrastructure development, we are seeing a massive rise in blockchain acceptance.
Much like Wyoming, North Dakota entering the market isn't necessarily, on its own, a major shift. Overall, the numbers will be small relative to the larger coins. In other words, "Roughrider" will never rival USDC or USDT.
What we are seeing is another step in distribution. By bringing this token to market, individuals have more options. This is something that I believe is outside the control of the banking system or Federal Government. States are not under the same regulation as private entities.
That said, the common design is being followed. This will alleviate any scrutiny from the regulators on the larger banks if they choose to accept this coin. Smaller institutions come under state control, bypassing that issue.
The Crypto Age
Payments are a crucial component of any economy. Crypto is leading us into a more enhanced digital economy.
Stablecoins are going to be the basis. While many thought Bitcoin would become the medium of payment, the US dollar is simply going to remain the unit of denomination. We are seeing massive expansion outside the traditional dollar generated system.
Coingecko presently has the stablecoin market listed at $309 billion. This is up from $250 billion just a few months ago.
The rapid rise shows how quickly things are being embrace. It is a number that will surely top $1 trillion by the end of 2026. The move by states such as North Dakota are side issues in this story. Things will get very interesting when the major banks start to roll out their stablecoins.
We are still in phase 1 of the transition. The tokenization of real world assets (RWA) is underway. This will explode over the next decade, presently stablecoins with an enormous market to facilitate.
North Dakota seeks to not get left behind.
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Interesting that North Dakota is drawing inspiration from Theodore Roosevelt and the Rough Riders, but the real question is: is this actually financial innovation or just a branding exercise?
When they say “Roughrider will never rival USDC or USDT” that’s true - but maybe competition isn’t their goal. Maybe they want to build a captive payment system for state services. Think about it: taxes, fees, licenses - all with their own stablecoin.
What I see: this is an experiment in state sovereignty. If North Dakota can have its own monetary policy - even limited - it means distancing from the Federal Reserve. This is much bigger than a simple stablecoin.
But the big risk: state-issued stablecoins could lead to fragmentation. We have 50 states now - if each builds its own stablecoin, what happens to interoperability? Or could this become a federated stablecoin network?
Wyoming started, North Dakota followed. If this works, we might see 50 different state stablecoins by 2030. Is that decentralization or just chaos?
It’s exciting to see more states adopting blockchain innovation. :)