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.
