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Xend Finance Facilitates cNGN Investments in Nigeria's Securities Market via cNGN Technology

CEO Ugo Aronu announces new platform designed to draw in investment from foreign sources, specifically targeting Nigeria.

Xend Finance Facilitates cNGN Investments in Nigeria's Financial Market through Blockchain...
Xend Finance Facilitates cNGN Investments in Nigeria's Financial Market through Blockchain Technology

Xend Finance Facilitates cNGN Investments in Nigeria's Securities Market via cNGN Technology

In a groundbreaking move, Xend Finance, a decentralized finance platform and cryptocurrency exchange, has launched a new feature designed to revolutionize the investment landscape in Nigeria. The new offering, powered by a stablecoin named cNGN and pegged to the naira, aims to make investing in Nigerian short-term debt instruments and securities more accessible for both local and international investors.

The cNGN stablecoin offers several potential benefits. First and foremost, it allows investors to bypass the traditionally lengthy and complex process of converting foreign currency to Nigerian naira. Instead, investors can swap USDT for cNGN on a decentralized exchange, Asset Chain, founded by Ugochukwu Aronu, and then use cNGN to invest in Nigerian money market instruments via the Xend Finance platform.

This streamlined process could serve as a significant channel for increasing foreign direct investment into Nigeria, given the comparatively high short-term debt yields in the country (around 21-22% annually, as mentioned by Xend Finance's CEO). Furthermore, using a decentralized finance (DeFi) platform enhances transparency, accessibility, and potentially lowers intermediaries and associated costs compared to traditional finance methods.

Investors can also invest small amounts, such as 10% of their USDT holdings, into cNGN and invest in Nigerian debt seamlessly, making it accessible for both large and small investors. As of mid-2025, approximately 36.3 million cNGN tokens sit on Asset Chain's infrastructure, with more than half of these tokens representing investments in the Nigerian money market.

However, the cNGN stablecoin also presents some limitations. The modest market cap and limited adoption of cNGN, reflecting limited liquidity compared to major stablecoins like USDT, could impact ease of large-scale transactions and price stability. Additionally, African blockchain infrastructure and regulatory frameworks are still evolving, posing risks or delays in terms of licensing, compliance, and integration with traditional financial systems.

Moreover, the dependence on stablecoin and crypto volatility, although cNGN is pegged to the naira, could affect investors’ confidence due to risks related to peg stability, smart contract vulnerabilities, and crypto market volatility. Lastly, the broader stablecoin ecosystem in Africa, including partnerships like Visa with Yellow Card, is still in early stages in many countries, including Nigeria, meaning cross-border and institutional adoption might take time to mature.

Despite these challenges, the cNGN stablecoin offers a promising, streamlined, and decentralized means for international and local investors to access high-yield Nigerian short-term debt markets, potentially increasing liquidity and foreign investment. Xend Finance is collaborating with money market fund AXA Finance to power this new investment feature, signalling a promising future for this innovative approach to investing in Nigeria.

  1. International and local investors can now bypass the complex process of converting foreign currency to Nigerian naira by swapping USDT for cNGN on Asset Chain, a decentralized exchange, and then use cNGN to invest in Nigerian money market instruments via the Xend Finance platform.
  2. The use of a decentralized finance (DeFi) platform like Xend Finance could potentially lower intermediaries and associated costs compared to traditional finance methods, making investments in Nigerian short-term debt instruments and securities more accessible for both large and small investors.
  3. The cNGN stablecoin, although imperfect due to limitations such as modest market cap, limited adoption, and potential risks associated with stablecoin and crypto volatility, offers a promising, streamlined, and decentralized means for foreign investors to access high-yield Nigerian short-term debt markets, potentially increasing liquidity and foreign investment.

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