cNGN: Quidax becomes second crypto exchange to list naira stablecoin

Quidax, a Nigeria-based cryptocurrency exchange, has officially listed cNGN, Nigeria’s first regulated stablecoin pegged to the naira, on its platform. This development follows a similar move by Busha, another provisionally licensed crypto exchange, which listed cNGN a month earlier.

The listing underscores Nigeria’s shifting stance on digital currencies, as the country seeks to balance regulatory oversight with the increasing adoption of blockchain-based financial tools.

The cNGN stablecoin, launched in February 2024 by the African Stablecoin Consortium (ASC) after three years of development, is designed to mirror the value of the Nigerian naira on a 1:1 basis. The consortium, composed of Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar, operates under the banner of WrappedCBDC Ltd., a joint venture established specifically for blockchain-based digital currency initiatives.

The SEC’s Regulatory Incubation (RI) programme, introduced in June 2024, provided the framework for WrappedCBDC Ltd. to gain approval in principle in August 2024, marking a significant step toward formalising cNGN’s place in Nigeria’s financial ecosystem.

With this listing on Quidax, users can now send and receive cNGN between wallets, opening the door to broader applications such as payments, transfers, and digital currency exchanges. It will expand the stablecoin’s reach across Nigeria’s growing crypto market. It boasts about 121.3 million tokens in circulation, held by 127 individuals, signalling a gradual but steady uptake since its debut.

Nigeria’s SEC has played a pivotal role in overseeing cNGN’s rollout, reflecting a governmental push to integrate cryptocurrencies into the nation’s financial system rather than imposing outright restrictions. This regulatory approach contrasts with previous scepticism toward digital currencies in Nigeria, where crypto adoption has surged amid economic challenges like naira depreciation and limited access to traditional banking services.

The SEC’s RI programme, alongside the Accelerated Regulatory Incubation Program (ARIP), has enabled platforms like Quidax and Busha to operate within a structured framework, fostering innovation while ensuring compliance.

WrappedCBDC Ltd. maintains strict oversight of exchanges seeking to list cNGN, vetting their reserve management capabilities to ensure supply stability. Exchanges must also pay a ₦100,000 verification fee to cover third-party service costs, a measure aimed at maintaining operational integrity.

Why cNGN?

The ASC envisions cNGN as a bridge for decentralised platforms that have delisted the naira due to regulatory or operational concerns, potentially reintroducing Nigerian traders to larger global exchanges. Additionally, its interoperability across multiple blockchain networks positions it as a viable remittance tool, offering lower-cost alternatives to traditional services or even dollar-based stablecoins like USDC.

For instance, while sending $100 in USDT on Ethereum might incur fees exceeding $1, cNGN transactions could cost as little as ₦150–₦500 (less than $1), making it an attractive option for cost-conscious users.

The broader goal of the ASC is to secure listings on additional exchanges, strengthening cNGN’s case as a transformative financial instrument. Experts suggest that its success hinges on user adoption and education. This can be bridged through awareness campaigns to drive uptake, particularly among Nigeria’s unbanked population and small businesses seeking efficient payment solutions.

For Quidax, the listing reinforces its position as a key player in Nigeria’s crypto space. Since its founding in 2018, the platform has built a reputation for facilitating quick and secure transactions in Bitcoin, Ethereum, and other digital assets. The addition of cNGN aligns with its mission to expand access to digital finance, though its long-term impact remains to be seen.

As Nigeria navigates its evolving relationship with cryptocurrencies, cNGN’s rollout represents a bold experiment in blending traditional finance with blockchain technology. Whether it can outpace existing naira integrations and deliver on its promise as a remittance and trading tool will depend on its ability to carve out a distinct niche in an already crowded market.