Naira-pegged stablecoin, cNGN, launches, lists on 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.
• It aims to combine the stability of traditional finance with the security and efficiency of blockchain technology.
• As of February 4, 2025, there are 4,400 cNGN in circulation, with seven holders, 14 total on-chain transactions, and one supporting country.
• As stated on its website, only licensed users can purchase cNGN directly from the platform, while others can access it through cryptocurrency exchanges like Busha and Quidax.
• The stablecoin claims full compliance with Nigeria’s Securities and Exchange Commission (SEC), with core members including Convexity, 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.cNGN vs eNaira

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 by the Central Bank of Nigeria on a centralized ledger, the cNGN operates as a fully decentralized stablecoin pegged to the naira.
• 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. 
• The cNGN has the potential to succeed where the eNaira has struggled, particularly in facilitating seamless remittance inflows into Nigeria.
• However, it is not without risks, as stablecoins can lose their peg and decrease in value if the managing institutions face crises.
• Although the cNGN appears to have secured approval from the CBN, there remain concerns over the state of crypto regulations in Nigeria.

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.