Naira-backed stablecoin cNGN launches on Celo network to ease cross-border payments

cNGN, a Naira-backed stablecoin launched on the Celo network, aims to streamline cross-border payments and instant foreign exchange settlement. The integration enables users to exchange cNGN for dollar-backed stablecoins like Tether's USDT via Textile FX, a cross-chain liquidity network. Eighty-eight OTC traders and cross-border payment companies have already joined Textile FX before the launch.

Stablecoins, pegged to fiat currencies, offer a faster and cheaper alternative to traditional banking for settling international transactions. WrappedCBDC, behind cNGN, is part of Nigeria's Regulatory Incubation program and Central Bank of Nigeria's anti-money laundering pilot. As of August 7, cNGN has a circulating supply of ₦2.5 billion ($1.8 million), a trading volume of ₦214.2 billion ($157 million), and 8,216 holders.

Managing Director Uyoyo Ogedegbe stated that Nigeria is a global leader in stablecoin adoption, and the mission is to enable scalable use cases across Africa and beyond. Textile FX processed over $4 million in institutional trading volume in July. Celo plans to incorporate cNGN in its governance process for paying transaction fees on the network, potentially enhancing its practicality for everyday transfers and merchant payments.

Celo's stablecoin ecosystem now includes 32 fiat-backed stablecoins, expanding its reach in Nigeria, a major player in sub-Saharan Africa's crypto market.