cNGN, the Naira-backed stablecoin issued by private company WrappedCBDC, has launched on the Celo blockchain, opening a new channel for instant foreign exchange (FX) settlement and cross-border payments using digital tokens.

The integration allows users to swap cNGN for dollar-backed stablecoins, such as Tether’s USDT, through Textile FX, a cross-chain liquidity network that said it had already onboarded 78 over-the-counter (OTC) traders and cross-border payment companies in Nigeria ahead of its launch.

The move is intended to connect a naira-denominated digital asset with global stablecoin liquidity, potentially giving fintechs and payment companies a faster and cheaper way to settle international transactions than traditional banking rails.

A stablecoin is a digital currency pegged to the value of a fiat currency, such as the US dollar or naira.

WrappedCBDC was part of the Nigerian Securities and Exchange Commission’s (SEC) Regulatory Incubation (RI) programme, which allows companies to test and pilot tokenised products under regulatory supervision. The company was also included in the Central Bank of Nigeria’s (CBN) anti-money laundering supervisory pilot on March 31, and was later admitted into the SEC’s Accelerated Regulatory Incubation Programme (ARIP) on July 2.

According to the company, cNGN is backed one-for-one by naira reserves held in Nigerian commercial banks. WrappedCBDC said it also invests those reserves 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, according to the issuer.

“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.” 

Textile FX said it processed more than $4 million in institutional trading volume in July.

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 also expands Celo’s growing 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.”

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