When people think of stablecoins, names like USDT (Tether) and USDC (USD Coin) are often the first that come to mind. A stablecoin is a type of cryptocurrency that maintains a stable value relative to a specific asset, such as the U.S. dollar.
Stablecoins like USDT and USDC are designed to offer price stability, serve as a medium of exchange, and act as a store of value.
However, for Nigerians, using dollar-backed stablecoins often comes with extra conversion costs, limited access, and exposure to government restrictions.
That’s where cNGN comes in. It’s a new naira-backed stablecoin, designed to offer the same speed and stability as USDT or USDC, but in local currency.
With cNGN, there’s no need to convert naira into dollars first. You can use it directly on the blockchain for nearly everything you would normally do with USDT or USDC.
In this article, we’ll break it down in plain language, including how to get started with cNGN.
What is cNGN?
cNGN, short for Compliant Naira, is Nigeria’s first regulated stablecoin, created to bring stability, speed, and efficiency to digital financial transactions.
It’s pegged 1:1 to the Nigerian Naira, allowing Nigerians to make payments, send money, save, and trade digitally without worrying about currency fluctuations.
Developed by WrappedCBDC Ltd, cNGN is backed by a consortium of Convexity Technologies Limited, Interstellar, and AlphaGeeks Tech, under the supervision of the Securities and Exchange Commission (SEC).
By combining innovation, security, and regulatory oversight, cNGN offers a reliable digital currency option for individuals and businesses.
What is Stablecoin?
A stablecoin is a cryptocurrency designed to maintain a steady value by being pegged to a fiat currency (like the U.S. Dollar $, Nigerian Naira ₦, Euro €, or British Pound £) or other assets.
For cNGN:
1 cNGN = 1 Nigerian Naira
Its value does not fluctuate like Bitcoin or Ethereum
It’s suitable for everyday transactions, savings, and cross-border payments
This stability makes cNGN ideal for Nigerians who want the benefits of blockchain technology without exposure to volatile assets.
The Story Behind cNGN
In 2021, the Central Bank of Nigeria (CBN) barred banks from facilitating cryptocurrency transactions. By late 2023, the CBN acknowledged that the restrictions were unsustainable.
On December 22, 2023, the CBN lifted the ban, allowing banks to support cryptocurrency transactions, largely due to global crypto adoption and the desire to promote blockchain innovation in the financial sector.
With the more progressive posture of regulators a coalition of Nigerian financial institutions, fintechs, and blockchain experts, proposed a compliant Nigerian stablecoin. This led to the creation of cNGN.
Developed by the WrappedCBDC consortium, cNGN was designed to:
Ensure full regulatory compliance
Provide fast, low-cost digital transactions
Enable Nigerians to store, transfer, and use the Naira digitally
Between March and August 2025, cNGN saw significant adoption. Its circulating supply grew from ₦121.3 million to ₦603.9 million, while the number of unique wallets expanded from 128 to over 832. On-chain transactions also surged from 253 to more than 57,000.
From just 4,400 tokens minted in February 2025 to hundreds of millions by August, cNGN’s rapid growth signals strong confidence and increasing integration across Nigeria’s digital ecosystem.
Today, cNGN is filling the gap between traditional finance and blockchain technology, making local and international transactions faster and more accessible.
How Does cNGN Work?
cNGN operates through a regulated mint-and-burn model:
Nigerian banks and licensed custodians hold real naira deposits in reserve.
For every ₦1 deposited, 1 cNGN token is minted on the Bantu blockchain (and supported on Ethereum, BNB Chain, and others).
When users redeem cNGN, the tokens are burned, and the equivalent naira is released from reserves.
How To Use cNGN
To use cNGN, you’ll need a compatible crypto wallet like Busha, Quidax, MetaMask, or Trust Wallet.
Transactions are fast and straightforward, no mining, just instant transfers verified by the blockchain.
For example, if Jeremy sends 1,000 cNGN to Fortune, the blockchain verifies it instantly, and Fortune receives it in seconds.
When Fortune redeems 500 cNGN, it’s burned, and he receives ₦500 directly into his bank account.
Every cNGN is traceable on-chain, and the WrappedCBDC Ltd ensures that all tokens are backed 1:1 by naira reserves. They also enforce AML/KYC compliance and conduct transparent audits, setting cNGN apart from unregulated stablecoins like USDT.
Everything You Need to Know About cNGN
Creation and Supply
New tokens are minted only when real naira is deposited into reserve accounts.
Over ₦602.9 million cNGN is currently in circulation, with transparent on-chain records.
Daily transaction volumes surpassed ₦1 billion on August 14, 2025, a major milestone for a five-month-old stablecoin.
Supported Wallets and Blockchains
Compatible with Coinbase Wallet, Trust Wallet, MetaMask, Rainbow Wallet, Busha, and Quidax.
Available across seven blockchains, offering users flexibility in speed and transaction costs.
Security and Regulation
Regulated by the Nigerian SEC and backed by real naira reserves.
Partnered with trusted security and compliance firms.
Fully transparent, with public on-chain data and periodic audits.
What Can You Use cNGN For?
cNGN can be used for the following:
Online Payments: Pay for goods and services faster and cheaper.
International Remittances: Send or receive money abroad instantly at low cost.
Crypto Trading: Trade cNGN for naira or other crypto assets like USDT.
Stable Savings: Store funds without losing value, maintaining a 1:1 peg.
DeFi Activities: Use cNGN for staking, lending, or yield farming.
Instant Transfers: Send money locally or globally in seconds.
Liquidity Provision: Provide liquidity on local crypto exchanges.
Store of Value: Hedge against inflation or currency volatility.
Lending and Payroll: Enable digital lending and salary payments using cNGN.
How cNGN Stands Out
While there are other naira-backed stablecoins like NGNT or ABCD, cNGN stands out due to:
SEC approval and regulatory oversight
Multi-chain support
Practical use cases for payments, savings, remittances, lending and DeFi
This balance of compliance, technology, and usability gives cNGN a clear edge for Nigerians seeking a trusted digital naira.
How to Get cNGN
You can get cNGN in several ways:
Official Platform: Purchase directly from the official cNGN site after completing KYC verification.
Licensed Exchanges: Platforms like Busha and Quidax allow buying, selling, and trading.
Peer Transfers: Receive cNGN from other users by sharing your wallet address.
Wallet Storage: Store safely in MetaMask, Trust Wallet, or BantuPay.
Promotions & Giveaways: Occasionally distributed by partners or the community.
Challenges
Low Awareness: Fewer than 40% of Nigerians are familiar with cryptocurrencies, so awareness and education will be crucial.
Underlying Volatility: Since cNGN is pegged to the naira, and the naira to the U.S. dollar, instability in the naira may still affect cNGN’s perceived value.
For developers or brands looking to integrate cNGN, you can access the full documentation here: cNGN Documentation.
FAQs About cNGN
Where is the cNGN reserve stored?
The cNGN reserve is held in commercial banks under the supervision of the Securities and Exchange Commission (SEC). This structure is intended to ensure both security and transparency.
Is cNGN the same as eNaira?
No. cNGN and eNaira are two different instruments.
cNGN is a privately issued stablecoin developed by WrappedCBDC Ltd. and regulated by the SEC.
eNaira, on the other hand, is a Central Bank Digital Currency (CBDC) issued directly by the Central Bank of Nigeria (CBN) and operates on a private blockchain controlled by the apex bank.
Is cNGN secure?
Beyond SEC regulatory oversight, cNGN benefits from affiliations with reputable blockchain and fintech firms such as Convexity Technologies, which specializes in blockchain infrastructure development, training and consultancy.
These partnerships strengthen the token’s technical security and transparency framework.
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, allowing 1:1 naira-pegged transactions on Ethereum and Binance Smart Chain. That same year, ABCD (Africa Stable-Coin) was introduced by Bitsika to offer stable digital assets for Nigerians and other Africans.
While cNGN is one of the newest entrants, its success will largely depend on adoption, transparency, and integration within Nigeria’s financial ecosystem.
What is meant by “third-party intermediation” in the cNGN model?
Third-party intermediation refers to a setup where private entities manage liquidity, reserves, and payments without direct CBN involvement.
In the case of cNGN, this means the stablecoin relies on financial partners and virtual asset providers like Xend Finance to process and distribute tokens.
Does cNGN have verifiable proof of reserves?
Currently, cNGN has and maintains a continuous, independently verified proof of reserves, which is a standard practice among leading stablecoins like Tether (USDT) or USD Coin (USDC).
With the regular attestations published on their website, users have verifiable data to confirm that each token is backed 1:1 by naira.
cNGN upholds this practise to ensure there is no s trust deficit which could hinder adoption.
How does cNGN compare to global stablecoins like Tether (USDT)?
While both are fiat-backed digital currencies, cNGN differs in scope and oversight.
Tether operates under international compliance standards and publishes quarterly attestations to prove its reserves, whereas cNGN is a domestic project still in its early stages of public verification.
USDT’s reserve model relies on diversified assets like U.S. Treasuries, while cNGN is backed solely by naira deposits, limiting volatility but also exposing it to naira instability risks.
Could cNGN’s structure impact Nigeria’s monetary sovereignty?
Yes, that’s a key concern. Because cNGN is regulated by the SEC and not directly overseen by the CBN, it introduces a parallel financial layer that could weaken the CBN’s ability to manage liquidity and credit creation.
Why is proof of reserves so important for stablecoins like cNGN?
Proof of reserves ensures that each token in circulation is fully backed by real assets, preventing depegging or insolvency.
The collapse of TerraUSD (UST) in 2022, which lost its $1 peg and wiped out over $40 billion in market value, highlighted why transparent, verifiable reserves are crucial.
For cNGN to maintain user trust and regulatory credibility, independent reserve attestations need to be constantly updated.
How does the cNGN project address security and compliance risks?
While risk is inevitable, cNGN is affiliated with Convexity, a respected pioneer of blockchain development, education and stakeholder in Nigeria.
It enforces AML/KYC standards and maintains an on-chain record of transactions for transparency.
Conclusion
cNGN is a stable, regulated, and multi-chain digital currency pegged to the naira. With cNGN, Nigerians can:
Make fast, low-cost payments
Send and receive funds globally
Trade securely and hedge against volatility
Save digitally with full transparency
Ultimately, the end goal is that cNGN connects traditional finance and blockchain innovation, giving Nigerians secure, efficient, and practical digital financial tools.
References
Nigeria CNGN stablecoin: everything you need to know about CNGN and eNaira …
Compliant Naira price today, cNGN to USD live price, market cap and chart
The CNGN project: Expert criticism and questions asked so far
Nigerians invest with cNGN stablecoin as regulators warn of risks