CBN Introduces ₦15bn Capital Requirement for Dollar Stablecoin Issuers

The Central Bank of Nigeria (CBN) has introduced a minimum paid-up capital requirement of ₦15 billion for companies issuing foreign currency-backed stablecoins, including digital tokens pegged to the United States dollar.

The new requirement is part of a regulatory framework designed to strengthen oversight of virtual assets and digital payment services while addressing potential risks associated with the country’s growing cryptocurrency market.

The provision is contained in the Regulations for the Operations of Non-Security Virtual Assets in Nigeria, released by the apex bank on Friday following a circular dated November 5, 2026.

According to the regulations, companies licensed to issue foreign currency-backed stablecoins under Class 2 must maintain a minimum paid-up capital of ₦15 billion at the point of entry and throughout their operations.

The CBN also introduced a minimum capital requirement of ₦10 billion for Class 1 issuers of naira-backed stablecoins, while other companies providing non-security virtual asset services must maintain at least ₦1 billion.

The apex bank explained that the capital requirements were designed to ensure that operators possess sufficient financial resources to manage their activities and meet their obligations to customers.

The regulations further empower the CBN to demand additional capital from operators based on factors such as transaction volumes, market importance, redemption obligations, technological risks and their potential impact on the wider financial system.

The regulator also clarified that the required capital must remain separate from stablecoin reserves, customer funds, operational liquidity and other regulatory deposits.

Under the framework, eligible capital must be maintained as cash in designated accounts with the CBN or in approved Federal Government securities under the regulator’s control.

Companies that fall below the prescribed capital threshold are required to notify the CBN immediately and submit a capital restoration plan within 10 working days.

The regulator may also restrict affected operators from issuing new tokens or onboarding additional customers until they meet the required financial standards.

Beyond capital requirements, the new regulations introduce strict conditions for assets backing stablecoins.

Issuers must maintain reserve assets equivalent to at least 100 per cent of their outstanding stablecoin obligations, alongside an additional two per cent buffer against potential losses.

The CBN further stated that issuers must receive and secure equivalent reserve assets before creating or issuing new stablecoin tokens.

The framework also guarantees stablecoin holders the right to redeem their tokens at face value, generally no later than the next business day after submitting a valid request. Standard redemption transactions must be free of charges.

In addition, the CBN has prohibited algorithmic stablecoins that depend mainly on supply adjustments rather than adequate reserve assets to maintain their value.

Tokens pegged to fiat currencies but primarily backed by other cryptocurrencies are also prohibited.

The regulations introduce enhanced supervision for stablecoins whose circulating value exceeds ₦500 billion for 30 consecutive days or whose usage reaches more than five million people in Nigeria.

Such digital currencies will be classified as systemically important and subjected to additional regulatory scrutiny because of their potential impact on financial stability.

The new framework also covers cryptocurrency exchanges, digital wallets, payment gateways, remittance services, digital asset custody providers and platforms facilitating peer-to-peer transactions.

Operators will be required to comply with regulations covering anti-money laundering, counter-terrorism financing, customer identification, transaction monitoring, cybersecurity, consumer protection and regulatory reporting.

The rules apply to both local and foreign companies providing regulated virtual asset services to Nigerians, irrespective of whether they maintain physical offices in the country.

However, the CBN clarified that virtual assets classified as securities would remain under the regulatory authority of the Securities and Exchange Commission (SEC), with both institutions expected to cooperate in areas where their responsibilities overlap.

The apex bank said the regulations were introduced to encourage responsible innovation, protect the integrity of Nigeria’s financial system and establish clear regulatory standards for emerging digital payment services.

The new framework took effect on November 5, 2026.

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