Naira-backed stablecoin cNGN has launched on the Celo blockchain, creating a new channel for instant foreign exchange settlement and cross-border payments in Nigeria. The integration, facilitated through Textile FX, a cross-chain liquidity network, allows users to swap cNGN for dollar-backed stablecoins such as Tether’s USDT. Textile FX said it had onboarded 78 over-the-counter Traders and cross-border payment companies in Nigeria ahead of the launch.
The move connects a naira-denominated digital asset with global stablecoin liquidity, offering Fintechs and payment companies a faster and cheaper alternative to traditional banking rails for international transactions. A stablecoin is a digital currency pegged to the value of a fiat currency such as the US dollar or naira.
WrappedCBDC, the private company issuing cNGN, participated in the Nigerian Securities and Exchange Commission’s Regulatory Incubation programme, which permits companies to test tokenised products under regulatory supervision. The firm was also included in the Central Bank of Nigeria’s anti-money laundering supervisory pilot on March 31 and admitted into the SEC’s Accelerated Regulatory Incubation Programme on July 2. According to the issuer, cNGN is backed one-for-one by naira reserves held in Nigerian commercial banks, with those reserves invested in treasury bills, money market funds, and fixed deposits.
As of August 7, cNGN had a circulating supply of about ₦2.5 billion ($1.8 million), cumulative trading volume of approximately ₦214.2 billion ($157 million), and 8,216 holders, the company reported. Textile FX said it processed more than $4 million in institutional trading volume in July.
“Nigeria is leading much of the world in stablecoin adoption,” Uyoyo Ogedegbe, cNGN’s managing director, said in a statement. “Our mission since launching cNGN has been to enable scalable, real-world use cases across Africa and beyond. Celo extends that work into one of the deepest stablecoin ecosystems, where cNGN now sits alongside more than 30 other stablecoins.”
Stablecoins have become increasingly important in Nigeria’s digital Economy as businesses and consumers seek alternatives to expensive and often delayed cross-border transfers. The country is one of the largest crypto markets in sub-Saharan Africa and has seen rapid adoption of dollar-backed stablecoins for payments, remittances, and savings.
Celo said it will begin a governance process to allow cNGN to be used to pay transaction fees on the network, a feature that could make the token more practical for everyday transfers and merchant payments. The launch expands Celo’s stablecoin ecosystem, which the company said now includes 32 fiat-backed stablecoins.
“Local currency stablecoins have been a core focus of the Celo ecosystem since mainnet launch in 2020, and Nigeria is one of the corridors where the case is clearest,” Markus Franke, Global Head of Stablecoins at Celo Core, said in a statement. “Bringing cNGN to Celo puts the regulated naira stablecoin on rails where transfers cost a fraction of a cent and settle in an instant, on a network powering payments for millions worldwide.”
