The Africa Stablecoin Consortium (ASC), developers of Nigeria’s first regulatory-approved stablecoin, cNGN, is in early discussions with major African crypto exchanges Yellow Card and Roqqu to list the naira-backed token.
While both parties have acknowledged the discussions, neither has yet pledged to integrate cNGN, a report by TechCabal said.
Read also: Busha launches cNGN: Nigeria’s private-sector stablecoin for fast cross-border transactions
Exchanges cautious amid demand concerns
The stablecoin has already secured listings on Busha and Quidax, two provisionally licensed Nigerian exchanges. But, expanding to pan-African platforms is crucial for its remittance and cross-border payment goals. Without support from larger exchanges, cNGN’s growth prospects may remain uncertain.
Jason Marshall, COO of Yellow Card, acknowledged ASC’s regulatory approval under Nigeria’s SEC Accelerated Regulatory Incubation Programme (ARIP) but emphasised the exchange’s selective listing criteria. “We have a lot of respect for any project admitted to ARIP, but we are very selective about the coins we list,” he said.
Yellow Card, which lists 14 tokens, including six stablecoins, evaluates projects based on market demand, financial backing, and compliance. Marshall noted that issuers typically need at least N50 billion in reserves audited by a reputable firm before being considered.
While ASC pitches cNGN as a bridge for African remittances, Marshall questioned its domestic utility. “For Nigeria, I’m unsure because the Naira is already digital. Transfers are instant and low-cost, but we’re open-minded,” he said.
The ASC faces a hurdle: cNGN needs exchange support to grow, but exchanges want proof of demand first. Without more substantial institutional backing or straightforward utility, Nigeria’s pioneering compliant stablecoin may struggle in a sceptical market.
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About Africa Stablecoin Consortium
The Africa Stablecoin Consortium (ASC) promotes digital inclusion through African-pegged stablecoins. They aim to simplify cross-border transactions, lower remittance fees, and expand financial access.
Working with regulators, ASC is creating an efficient digital finance system for compliance and boosting economic opportunities across Africa. Its vision is a seamless digital finance ecosystem where stablecoins enhance accessibility, efficiency, and economic opportunities for millions.