A cryptocurrency start-up in Nigeria, BuyCoinsAfrica has created a stablecoin called NGNT that is similar to the regular USD tether.
According to the website, the team built the Naira-backed token (NGNT) on the blockchain and Coinlock as a means of creating a platform to earn interest while locking your NGNT in a fixed deposit.
The NGNT is an ERC 20 token built on the Ethereum blockchain. Its purpose was to bridge the Naira with the advantages of digital currency, thereby giving cryptocurrency traders, business owners, and software developers the ability to transact with the Naira across the blockchain.
In a medium blog post published by the team, they iterated that they are dedicated and committed to complete actualization of the potentials of this project as a lot of hard work has already been put in to get this far.
Just like the USDT the NGNT is pegged on a 1:1 ratio to the Naira, this means 1 NGNT will always be redeemable for 1 Naira. This token is expected to provide utility for traders using the Nigerian Naira as it affords them the flexibility of holding digital fiat and escaping the market volatility inherent in cryptocurrencies.
The use of the NGNT is devoid of any form of dependencies such as card processors, banks or any financial institution. As security happens to be the most important issue of concern to users the BuyCoinsAfrica team has ensured that reliable NGNT reserves are safely kept in licensed financial institutions and backed up across multiple bank accounts.
The NGNT is also open-source, allowing other projects to build around its source code.
Although BuyCoins is a relatively new startup they have evolved rapidly over the last year while maintaining their core mission, which is to create a platform for true borderless transfer of value across the African continent and beyond.
Finally, the blog post recorded that over 10 billion Naira in crypto trades this year has been processed on the platform, having served about 1400 users this year the team still looks forward to an exponential growth of these figures in the coming years.