CBN sets N15bn minimum capital for dollar stablecoin issuers in Nigeria

Foreign currency-backed stablecoin operators seeking to operate in Nigeria must now maintain a minimum paid-up capital of N15bn under new regulations introduced by the Central Bank of Nigeria, tightening entry requirements for companies offering dollar-linked digital tokens.

The new threshold, which is higher than the N10bn requirement for naira-backed stablecoin issuers, forms part of the CBN's expanded regulatory framework for virtual assets and digital payment services.

The provisions are contained in the Regulations for the Operations of Non-Security Virtual Assets in Nigeria, released by the apex bank on Friday, following a November 5 circular signed by the Director of Payments System Policy Department, Musa Jimoh.

Under Section 15.2, the CBN stated that a Class 2 licensed issuer must maintain paid-up capital of N15bn “on entry and at all times thereafter”.
Class 2 covers stablecoins designed to maintain a stable value against foreign currencies, including the United States dollar.

Issuers of naira-backed stablecoins, classified as Class 1, are required to maintain at least N10bn in paid-up capital, while other non-security virtual asset service providers must have a minimum of N1bn.

The new framework also gives the CBN powers to demand higher capital from operators depending on their transaction volumes, market importance, redemption obligations, technology risks and potential exposure to the wider financial system.

The regulator further stipulated that the capital requirements must be separate from funds reserved to back stablecoins, customer deposits and operational liquidity.

“Capital shall be separate from and additional to issuer reserves, the CBN reserve deposit, customer funds and assets and operational liquidity,” the document stated.

The apex bank also requires eligible capital to be held in cash in designated accounts with the CBN or in approved Federal Government securities under its control.

Operators whose capital falls below the prescribed threshold must immediately notify the regulator and submit a restoration plan within 10 business days.

The CBN may restrict fresh token issuance and customer onboarding until the affected company restores compliance.

Beyond the financial requirements, the new rules impose stricter reserve obligations on stablecoin issuers, requiring them to maintain assets equivalent to at least 100 per cent of their outstanding obligations, alongside an additional two per cent buffer against potential losses.

The regulator also prohibited the issuance of new tokens unless equivalent eligible reserve assets had been received and secured.

“No Licensed Issuer shall issue new stablecoin tokens (mint) unless, at the time of minting, equivalent Eligible Reserve Assets have been received and held in the Reserve Pool,” the regulations stated.

Stablecoin holders must also be allowed to redeem their tokens at face value, generally by the next business day after submitting a valid request. Standard redemptions must be free of charges.

The framework prohibits algorithmic stablecoins that depend primarily on supply adjustments rather than adequate reserve assets, as well as tokens linked to fiat currencies but backed mainly by other cryptocurrencies.

The CBN also introduced enhanced supervision for stablecoins whose circulating value exceeds N500bn for 30 consecutive days or which are used by more than five million people in Nigeria.

Such instruments will be classified as systemically important and subjected to additional regulatory scrutiny.

The regulations extend to cryptocurrency exchanges, digital wallets, payment gateways, remittance operators, custody services and platforms facilitating peer-to-peer transactions.

Operators will also be required to comply with anti-money laundering and counter-terrorism financing rules, customer identification procedures, transaction monitoring, cybersecurity standards, consumer protection requirements and regulatory reporting obligations.

The provisions apply to both Nigerian and foreign companies offering regulated services to customers in the country, regardless of whether they have physical offices in Nigeria.

However, the CBN clarified that virtual assets classified as securities would remain under the regulatory authority of the Securities and Exchange Commission, with both agencies expected to coordinate where their responsibilities overlap.

The apex bank said the framework was designed to “promote responsible innovation, strengthen the integrity of the Nigerian financial system and provide an appropriate regulatory framework for emerging digital payment instruments”.

The regulations took effect on November 5, 2026.