Community Banks Explore Stablecoin Payment Uses and Issuance Strategies
Stablecoins maintain a stable value through backing by assets such as fiat currency and can be used for real-time settlement and payments between institutions. For community and midsize banks, adopting the technology could shorten clearing times and reduce costs. Experts caution, however, that banks should first define a clear use case—such as payments, deposits or cross-border remittances—before assessing compliance, reserve and technology frameworks.
The state-owned Bank of North Dakota plans to launch Roughrider Coin in 2026, making it a notable example of a local bank exploring stablecoin issuance. The bank has not yet disclosed the issuance size, reserve amount or exact launch date. Industry experts recommend that community banks first pilot the technology in specific payment scenarios before deciding whether to issue their own coin or partner with an external platform.
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The history behind this eventStablecoins Offer U.S. Community Banks New Opportunities in Capital Formation and Risk Management
The United States has about 3,909 community banks, commonly defined by regulators as institutions with less than $10 billion in assets. They rely on deposits to fund lending to small and micro-sized businesses but face competition from large banks and fintech firms. Combined with asset tokenization, stablecoins could accelerate settlement, improve transparency and broaden the tools available for capital formation and risk management.
In a commentary by Noelle Acheson published by American Banker on February 26, 2026, she argued that community banks could offer stablecoin custody, in-app wallets and payment services while earning issuer revenue shares and transaction fees. A survey also found that 77% of stablecoin users would be willing to open a wallet with their existing bank. The article disclosed no individual investment amount, focusing instead on new revenue models.
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