THE Central Bank of Nigeria (CBN) has set a minimum capital requirement of N15 billion for companies issuing stablecoins backed by foreign currencies, including the US dollar, under a new regulatory framework for virtual assets and digital payment services.
The requirement, contained in the apex bank’s Regulations for the Operations of Non-Security Virtual Assets in Nigeria, raises the financial entry threshold for operators seeking to issue foreign currency-linked digital tokens in the country.
The regulations were released on Friday, following a November 5, 2026 circular signed by the Director of the Payments System Policy Department, Musa Jimoh.
Under Section 15.2, the CBN requires Class 2 licensed issuers to maintain paid-up capital of at least N15 billion throughout their operations.
Class 2 stablecoins are digital tokens designed to maintain a stable value against foreign currencies, particularly the US dollar.
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The framework sets a lower minimum of N10 billion for Class 1 issuers whose stablecoins are pegged to the naira, while other non-security virtual asset service providers must maintain at least N1 billion in paid-up capital.
The N1 billion requirement must be maintained separately from capital committed to licences issued by the Securities and Exchange Commission (SEC) or other regulatory authorities.
CBN separates capital from stablecoin reserves
The new rules distinguish between the capital operators must maintain to obtain and retain their licences and the reserves required to back stablecoins in circulation.
The CBN said regulatory capital must remain separate from issuer reserves, mandatory deposits with the apex bank, customer funds and operational liquidity.
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This means stablecoin issuers cannot count the assets backing their tokens towards meeting their minimum capital requirements.
The regulator also reserves the right to demand additional capital from operators based on transaction volumes, market significance, redemption obligations, technology risks and their exposure to the wider financial system.
Eligible capital must be held as cash in designated accounts with the CBN or in approved Federal Government securities under the apex bank’s control.
Operators whose capital falls below the prescribed threshold must immediately notify the regulator and submit a capital restoration plan within 10 business days.
The CBN may restrict fresh token issuance and customer onboarding until the operator restores compliance.
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Stablecoin issuers face 102% reserve requirement
Beyond the capital thresholds, the framework requires stablecoin issuers to maintain eligible reserve assets equivalent to at least 100 percent of their outstanding token obligations, alongside an additional two percent buffer against potential losses.
The rules prohibit issuers from creating new tokens unless equivalent eligible reserve assets have already been received and deposited in the reserve pool.
Holders must also be allowed to redeem their stablecoins at face value, generally by the next business day after submitting a valid request.
Standard redemptions must be free of charges. The CBN also prohibits algorithmic stablecoins that depend primarily on adjustments to token supply rather than adequate reserve assets to maintain their value.
Tokens pegged to fiat currencies but backed mainly by other cryptocurrencies are also prohibited.
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Large stablecoins face enhanced supervision
The regulator introduced additional oversight for stablecoins whose circulating value exceeds N500 billion for 30 consecutive days or whose usage exceeds five million people in Nigeria.
Such instruments will be designated as systemically important stablecoins and subjected to enhanced supervisory requirements because of their potential impact on the wider financial system.
The regulations cover a broad range of virtual asset activities, including cryptocurrency exchanges, digital wallets, payment gateways, remittance services, custody providers and platform-facilitated peer-to-peer transactions.
Operators will also face obligations relating to anti-money laundering, counter-terrorism financing, customer identification, transaction monitoring, cybersecurity, consumer protection and regulatory reporting.
The requirements extend to foreign companies providing regulated 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 jurisdiction of the SEC, with both institutions expected to coordinate where their responsibilities overlap.
In the accompanying circular, the apex bank said the framework was intended to promote responsible innovation, strengthen the integrity of the Nigerian financial system and provide appropriate oversight for emerging digital payment instruments.
The regulations took effect on November 5, 2026, establishing new licensing, capital and supervisory requirements for participants in Nigeria’s virtual asset market.
