The Africa Stablecoin Consortium (ASC), the team behind Nigeria’s first regulatory-approved stablecoin, cNGN, has entered early talks with major African crypto exchanges Yellow Card and Roqqu to secure listings for the Naira-backed token.
Although both companies have confirmed these discussions, neither has committed to listing the stablecoin just yet.
Currently, cNGN is listed on two provisional Nigerian exchanges, Busha and Quidax. However, its expansion to more platforms, particularly those with a pan-African reach, is essential for driving adoption—especially for its remittance use case. Without firm commitments from significant exchanges, the stablecoin’s growth remains uncertain.
This hesitation is a key challenge for cNGN’s adoption. Its success depends largely on exchange support, but exchanges are cautious, waiting for proof of demand before committing. The stablecoin, designed to facilitate cross-border transactions and remittances, could face stagnation in a market already familiar with digital Naira transfers.
“We respect any project that has been admitted to Nigeria’s SEC Accelerated Regulatory Incubation Programme (ARIP); we take it seriously,” said Jason Marshall, COO of Yellow Card. “But we are very selective about the coins we list.”
Yellow Card currently lists 14 tokens, including six stablecoins. Marshall emphasized that factors such as market demand, financial backing, and compliance play a crucial role in the company’s listing decisions.
“For us to consider a coin, it typically needs to have raised the equivalent of ₦50 billion ($32.5 million) in capital reserves, and we’d need an accounting firm to verify those reserves,” Marshall explained. “We expect the coin to be well-capitalized.”
While ASC envisions cNGN as a bridge for African remittances—allowing users to swap it for other stablecoins like a Kenyan Shilling-backed token (cKES)—Marshall remains skeptical about its domestic use.
“I see cNGN as a two-way street,” he said. “For domestic use cases in Nigeria, I’m not sure. The Naira is already digital, and the Nigerian bank transfer system is very advanced—transfers are instant and low-cost. But we’re open-minded to domestic use cases; we just aren’t sure yet.”
Roqqu’s CEO, Eseoghene Onomor, also confirmed talks with ASC but shared concerns about market demand.
“These things take time,” Onomor said. “It’s not enough to list a coin or token on your platform. It has to be something people want. Adoption is low, and not everyone sees the value of cNGN right now, but I do see its potential.”
ASC faces a tough challenge: cNGN needs exchange listings to drive adoption, but exchanges want proof of demand before listing it. Without stronger institutional support and clear utility, Nigeria’s first compliant stablecoin may struggle to gain traction in a market where crypto users remain cautious.
What’s your take on the future of cNGN and its potential to transform remittances in Africa?
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