Naira-backed stablecoin cNGN debuts on local exchanges

The compliant Nigerian naira (cNGN), a naira-pegged stablecoin, is now live and available on licensed Nigerian exchanges.

With listings on licensed exchanges like Busha and Quidax, cNGN aims to provide users with a seamless way to trade and exchange digital assets.

The details

• The naira-backed stablecoin officially launched on February 3, 2025, positioning itself as Africa’s first regulated stablecoin.
• According to the website, as of February 4, there are 4,400 cNGN in circulation, with seven holders, 14 total on-chain transactions, and one supporting country.
• It also mentions only licensed users can purchase cNGN directly from the platform, while others can access it through cryptocurrency exchanges like Busha and Quidax.

Of note

• The cNGN is licensed to operate under Nigerian Securities and Exchange Commission (SEC) regulations, following the provisional license granted last year to its founding entity, Wrapped CBDC.
• Wrapped CBDC is a member of the Africa Stablecoin Consortium (ASC), which oversees the cNGN stablecoin.
• It is a joint venture led by Convexity, with members including Interstellar, Digital Currency Coalition, and Alpha Geek.

Dive deeper  

• The cNGN was introduced in 2024 by the African Stablecoin Consortium (ASC), a coalition of Nigerian financial institutions and blockchain companies.
• In January 2025, ASC announced plans to launch cNGN within a Central Bank of Nigeria-regulated sandbox the following month.
• The stablecoin is designed to be interoperable across multiple blockchains, facilitating remittances and providing liquidity for on-chain protocols.

eNaira vs cNGN

• Nigeria’s central bank digital currency, the eNaira, and the cNGN stablecoin are both digital assets backed by the naira, maintaining a fixed value tied to the national currency.
• Unlike the eNaira, which is issued and controlled solely by the Central Bank of Nigeria, cNGN is issued and managed by a licensed private entity, Wrapped CBDC in this case.
• Its blockchain nodes are distributed across members of the African Stablecoin Consortium, ensuring a decentralized structure.
• The cNGN is designed for interoperability with multiple blockchains, expanding its potential use cases beyond the limitations of the eNaira.

Why this matters 

• Nigeria was first to the CBDC scene in Africa, launching the eNaira in 2021. 
• However, it struggled to scale and gain widespread adoption due to technical issues with its makeup, a lack of clear use cases and poor publicity. 
• It remains to be seen whether the cNGN can succeed where the eNaira failed, especially given the risks of stablecoins losing their peg and value if managing institutions face crises.

Zoom out

• In August 2024, the SEC issued provisional crypto licenses to two exchanges, Busha and Quidax. As a result, it is not surprising that they are among the approved platforms for purchasing cNGN.
• Announcing the development on social media, Busha said the cNGN is available for crossborder remittances, daily payments and exploring decentralized finance.
• It added that users could purchase the cNGN with fiat or any other cryptocurrency.