After more than three years of navigating regulatory challenges, cNGN has officially launched as Nigeria’s first compliant stablecoin. The company announced the launch as part of its plans to transform digital asset trading in the country.
cNGN is a multi-chain stablecoin that is pegged to the naira. Stablecoins generally are digital currencies designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency like the U.S. dollar or Nigerian naira.
Unlike volatile cryptocurrencies like Bitcoin, stablecoins offer price stability, making them useful for payments, remittances, and trading. They operate on blockchain networks, allowing fast and low-cost transactions while reducing the risks of traditional crypto price swings. Examples include USDT (Tether), USDC, and DAI.
According to Adedeji Owonibi, founder of Convexity and Director at cNGN, the stablecoin project is going through the SEC’s regulatory incubation program to receive approval from the Nigerian government.
He added that cNGN is now live on Nigeria’s licensed digital asset exchanges, including Busha and Quidax.
cNGN is also available on multiple blockchain networks, including Assetchain, Base, Bantu, BNB Chain, Ethereum, and Polygon, with upcoming support for Tron and Solana.
The company believes that this launch will bring a new level of regulatory compliance and stability to Nigeria’s digital economy. The stablecoin will roll out across partner exchanges and financial institutions starting in February, offering businesses and individuals a secure and efficient way to transact in digital assets.
This marks a major milestone for Nigeria’s blockchain ecosystem, as cNGN creates new opportunities for seamless payments, cross-border transactions, and broader adoption of digital currencies in the country.
Currently, Nigerians are amongst the top users of crypto assets, especially USDT. This is primarily due to the unstable nature of the Naira, which has lost huge value to the dollar in the last 12 months.
While Nigeria has already taken steps to digitize its economy with the launch of the eNaira in 2021, cNGN represents a different approach to digital assets. The eNaira is a central bank digital currency (CBDC), meaning it is fully controlled and issued by the Central Bank of Nigeria (CBN) as a government-backed digital version of the naira.
On the other hand, cNGN is a stablecoin, a type of digital asset designed to maintain a stable value but operates on blockchain networks and is not directly issued by the CBN. Instead, it follows regulatory guidelines while being integrated with decentralized financial systems.
The Nigerian government has had a complex and shifting stance on the digital assets economy. Initially, the Central Bank of Nigeria (CBN) took a strict approach, prohibiting banks from facilitating cryptocurrency transactions in February 2021 due to concerns over fraud, money laundering, and financial instability. This forced many crypto businesses and users to rely on peer-to-peer (P2P) trading.
However, in December 2023, the CBN lifted the ban and allowed banks to work with licensed digital asset firms, signaling a more open approach.
Meanwhile, the Securities and Exchange Commission (SEC) has taken steps to regulate the industry by introducing a regulatory incubation program to oversee compliant digital asset projects, such as cNGN.
