Payments Giant Fiserv has launched its digital asset platform with financial institution clients, moving its stablecoin infrastructure from development into live operations. The initial application of the platform will be Roughrider Coin, a dollar-pegged stablecoin developed by the Bank of North Dakota for bank-to-bank payments. The platform unites banking technology with blockchain settlement.
Roughrider Coin is designed for payments among banks in North Dakota, with the participation of more than 90 banks and credit unions using the platform via the Commercial Center of Fiserv. VersaBank acts as issuer and custodian, while Fireblocks provides the infrastructure for digital assets and tokenization. Transactions will be processed by Solana.
Also Read | Arbitrum Expands RWA Activity as ARB Price Structure Draws Attention
Fiserv Brings Stablecoin Platform Into Banking
Financial institutions can access Roughrider Coin via Commercial Center, the commercial online banking platform by Fiserv. This way, the participating financial institutions will be able to leverage the digital currency alongside traditional money transfer services between banks without having to resort to an alternative interface for blockchain transactions.
According to Fiserv, the platform will enable issuance, reserve, custody, and settlement infrastructure for the Roughrider Coin. It is also positioning the platform for card issuance, cross-border payments, programmable commerce, and treasury automation for stablecoins. These include tokenized deposits and global currency accounts.
Sunil Sachdev, Fiserv’s head of Embedded Finance and Digital Assets, said moving the first use case from concept to production represents an important milestone. He added that the collaboration is intended to help financial institutions pursue new banking and payments applications while maintaining security and regulatory standards.
Roughrider Coin Targets Bank-to-Bank Payments
Using the platform, Bank of North Dakota will be able to distribute the Roughrider Coin in its payment and banking processes. The coin will be specifically used for bank-to-bank payments that occur between community banks and credit unions in North Dakota, not as a cryptocurrency and digital asset for consumers.
For the participants in the initiative, the project is important as it uses blockchain settlement technology in an existing banking network. According to the Bank of North Dakota, the Roughrider Coin offers another channel to move money in the interbank network of the state and will help the bank in the development of agriculture, trade, and industry.
The Roughrider Coin is offered via the digital asset platform of Fiserv and backed by VersaBank, Solana, and Fireblocks. The distribution of responsibilities within the network includes the token’s issuer to deal with the token’s banking aspects, Fireblocks to offer the digital asset technology, and Solana to deliver the blockchain network for transaction settlement.
VersaBank Handles Issuance and Custody
VersaBank USA, N.A., which is an entirely owned subsidiary of VersaBank, is tasked with issuance of Roughrider Coin and custody management. This includes minting and burning of the stablecoin and custody management of reserve assets.
VersaBank president David Taylor stated that the collaboration clearly outlines the way that VersaBank can utilize its unique digital asset technology in commercial banking. Moreover, he stated that the bank considers its operations in the context of a nationally regulated model as vital for the application of digital asset solutions in banking institutions.
This structure also reflects the trend in the world of stablecoin projects where stablecoin initiatives are now increasingly linked to financial technology companies and not purely to crypto companies. Fiserv offers banking technology and client relationships, VersaBank regulated issuance and custody management, while Fireblocks provides infrastructure for digital asset management.
What Fiserv’s Launch Means for Banks
The short-term effects of this innovation are centered around North Dakota’s financial institutions, which will make over 90 banks and credit unions use Roughrider Coin. The initial goal of this innovation is different from a retail stablecoin in that it is designed to facilitate bank-to-bank transactions in the existing network. The potential future use cases may include other digital currencies and payment solutions.
Fiserv can benefit from this innovation since it helps create a real example of a banking use case for its digital asset platform. The company has outlined other areas where Roughrider Coin can be used, which include cross-border payments, programmable commerce, treasury automation, and stablecoin-based card programs. All of these areas give the opportunity to leverage the tokenized money outside of North Dakota.
Further steps will involve the adoption of Roughrider Coin by participating financial institutions and the creation of new use cases for the platform. Roughrider Coin acts as the initial production deployment, and Fiserv, VersaBank, and their partners claim that this infrastructure is capable of implementing other digital assets’ use cases in banking and payment systems.
Also Read | Polygon Raises POL Staking Rate to 7.7% With Fee Rewards
Be the first to comment