Nigerian crypto exchange Quidax has officially listed cNGN, the country’s first regulated stablecoin pegged to the Naira.

This move, following a similar listing by fellow crypto platform Busha, signals a growing effort to balance regulation with crypto adoption in Africa’s largest economy.

The listing allows Quidax users to send and receive cNGN within their wallets, paving the way for future use in payments, cross-border transfers, and digital currency exchanges.

While Quidax has not publicly commented on the decision, the development reflects a broader push by Nigeria’s Securities and Exchange Commission (SEC) to integrate blockchain-based financial solutions into the mainstream financial system.

The Journey of cNGN: From Concept to Reality

The cNGN stablecoin is the product of a three-year collaboration by the African Stablecoin Consortium (ASC), a coalition that includes Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar.

In February 2024, after years of development, the ASC officially launched cNGN to create a stable digital asset backed by the Naira.

A key moment came in June 2024, when Nigeria’s SEC introduced the Regulatory Incubation (RI) programme, a framework designed to guide crypto startups through compliance while promoting innovation.

The ASC, through its joint venture WrappedCBDC Ltd, applied for regulatory approval and secured a provisional licence in August 2024, clearing the path for cNGN to enter the market.

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The listing on Quidax is the next step in the stablecoin’s expansion. With 121.3 million tokens already in circulation and 127 holders as reported by the cNGN website, the stablecoin is steadily gaining ground.

Each new exchange listing increases its visibility and utility, enhancing its potential as a tool for both domestic and international transactions.

Why Does cNGN Matter?

The emergence of cNGN addresses a growing need for stable, regulated digital assets in Nigeria’s crypto ecosystem.

Traditional fiat Naira is already accessible on many crypto platforms, leading some traders to question the necessity of a Naira-backed stablecoin. However, cNGN offers several potential advantages:

1. Access to Decentralised Platforms: Many global decentralised exchanges (DEXs) previously delisted the Naira due to regulatory uncertainty. cNGN, with its regulated status, could reintroduce access to these platforms for Nigerian users.
2. Cross-Border Transactions: As a blockchain-based asset, cNGN could streamline cross-border payments, reducing the friction and high fees associated with traditional banking channels.
3. Regulatory Oversight and Transparency: With the SEC actively overseeing its rollout, cNGN offers a compliant alternative for those wary of the regulatory gray areas surrounding other digital assets. WrappedCBDC also enforces a ₦100,000 verification fee to vet exchanges, ensuring only platforms with robust reserve management capabilities can list the stablecoin.

The Scepticism Around cNGN

Despite these promises, not everyone in the crypto community is convinced of cNGN’s utility. Some critics argue that the existing availability of fiat Naira on major crypto platforms has made the stablecoin worthless.

For the stablecoin to succeed, it must offer clear advantages over traditional Naira transactions while maintaining stability and ease of use.

What’s Next for cNGN?

The battle for user adoption will ultimately determine the success of cNGN. The African Stablecoin Consortium is actively working to expand the number of exchanges supporting the stablecoin, with the goal of positioning cNGN as a primary remittance tool for Nigerians.

If successful, cNGN could:

• Facilitate faster, cheaper cross-border transfers.
• Increase financial inclusion by providing a regulated digital currency.
• Restore Naira access to major decentralised platforms.

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However, the stablecoin faces challenges in convincing crypto users of its necessity. The regulatory framework, while offering legitimacy, may also create bureaucratic barriers to wider adoption.

For now, the listing on Quidax represents a key milestone in the cNGN journey, one that reflects the delicate balance Nigeria’s regulators are striking between innovation and oversight.

As the ecosystem evolves, cNGN’s fate will depend on its ability to deliver tangible benefits in a market already familiar with digital financial tools.

Looking Ahead
The introduction of cNGN marks a new chapter for Nigeria’s cryptocurrency industry, one where regulation and innovation coexist.

With Quidax joining Busha in supporting the stablecoin, the African crypto community is watching closely to see if cNGN can reshape how Nigerians engage with digital finance or if it will remain a limited solution in an already vibrant crypto ecosystem.