In May 2021, nearly a trillion dollars' worth of USDT was traded in a single day, making it the most traded stablecoin within 24 hours. On average, about $100 billion worth of USDT is traded daily, solidifying its position as the most traded stablecoin and cryptocurrency in the world, followed by Bitcoin.
These massive daily volumes highlight the growing popularity of stablecoins. Pegged to real-world currencies like the dollar, stablecoins are not prone to volatility, making them a reliable store of value with seamless cross-border functionality.
This is why cNGN, a naira-pegged stablecoin, was created — to enable easy naira transfers across borders, promote financial transparency, and facilitate cheaper transactions.
What is the cNGN stablecoin?
cNGN is a stablecoin developed by WrappedCBDC. It is pegged to the naira at a 1:1 ratio, meaning ₦1 equals 1 cNGN.
Initially scheduled for launch in February 2024, cNGN was delayed to meet regulatory requirements. However, in August 2024, it was admitted into Nigeria’s Securities and Exchange Commission (SEC) Regulatory Incubation Program. This programme allows the SEC to assess the real-world operations of crypto and blockchain projects under close supervision. As a result, cNGN is recognised as a regulated stablecoin.
Is cNGN a cryptocurrency?
Yes, cNGN is a type of cryptocurrency known as a stablecoin. Like other cryptocurrencies, it operates on a public blockchain. However, unlike volatile digital assets like Bitcoin and Solana, cNGN maintains a stable value by being pegged to the naira.
How does cNGN maintain a stable value?
cNGN retains its 1:1 peg with the naira through fiat collateralisation. For every cNGN issued, there is an equivalent amount of naira held in reserve. This model ensures stability, much like USDT.
Stablecoins maintain their pegs in different ways:
- Fiat-collateralised stablecoins (cNGN, USDT, etc.) are backed by real cash in bank reserves.
- Crypto-collateralised stablecoins like DAI are backed by cryptocurrencies but often require over-collateralisation.
- Commodity-backed stablecoins are tied to physical assets like gold.
- Algorithmic stablecoins rely on supply adjustments, but some, like TerraUSD, have collapsed, leading to significant market losses.
Fiat-backed stablecoins like cNGN offer greater reliability due to their real-world asset reserves and regulatory oversight.
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How is cNGN created?
cNGN is minted when naira is deposited into the cNGN reserve. While the process is very technical, the fundamental principle is that new tokens are issued only when backed by naira deposits.
How much cNGN has been created?
According to the cNGN website, as of February 13, 2025, 66.1 million cNGN has been minted, held by 20 wallet addresses, with 74 on-chain transactions recorded. Currently, cNGN is only available on one cryptocurrency exchange — Busha. Expanding its adoption will require increased education and publicity.
Where is the cNGN reserve stored?
The cNGN reserve is held in commercial banks under SEC regulation, ensuring security and transparency.
Is cNGN the same as eNaira?
No, cNGN and eNaira are different. cNGN is a privately issued stablecoin by WrappedCBDC Ltd., regulated by the SEC. In contrast, eNaira is a central bank digital currency (CBDC) issued by the Central Bank of Nigeria (CBN) that operates on a private blockchain.
How can people access cNGN?
cNGN is available through exchanges like Busha or directly from the cNGN platform. However, direct purchases require registration on the cNGN website, a legal identity profile, and verification.
Which wallets support cNGN?
cNGN can be stored in non-custodial wallets like Trust Wallet and MetaMask. Centralised exchanges such as Quidax and Busha can hold cNGN if they support it.
Which blockchains support cNGN?
cNGN operates on seven blockchains: Binance Smart Chain, Asset Chain, Bantu Chain, Ethereum, Polygon, Tron, and Base.
To understand how this works, think of blockchain networks as highways and tokens as vehicles. A token like cNGN can exist on multiple highways, allowing users to choose the best route based on factors like speed, cost, and security.
What are the use cases for cNGN?
One of the biggest use cases for cNGN is cross-border transactions. Anyone, anywhere in the world, can hold and send cNGN effortlessly. For example, a Nigerian in the UK or US can send money back home instantly without worrying about exchange rates or high fees.
Businesses can also accept cNGN payments from international clients without dealing with long settlement times. For Nigerian freelancers and remote workers, getting paid in cNGN eliminates P2P transaction risks and cashout struggles.
Additionally, cNGN can be used in decentralised finance (DeFi) applications for lending, staking, and trading on blockchain-based platforms.
Is cNGN secure?
Yes, cNGN is secure.
Beyond regulatory oversight by the SEC, cNGN is affiliated with reputable blockchain companies like Convexity, which specialises in crypto forensics and security.
Is cNGN the only naira-backed stablecoin?
No, cNGN is not the first or only naira-backed stablecoin.
In 2019, NGNT was launched by the Token Mint consortium, enabling transactions on Ethereum and Binance Smart Chain with a 1:1 naira peg. That same year, ABCD (Africa Stable-Coin) was introduced by Bitsika to provide a stable digital asset for Nigerians and other Africans. While cNGN is one of the newest entrants, its success will depend on its adoption and integration into Nigeria’s financial ecosystem.
cNGN represents a regulated and secure step toward stable digital transactions in Nigeria. Whether it gains widespread adoption remains to be seen, but its regulatory backing and broad blockchain support position it as a strong contender in the space.
