CBN mandates N15bn capital for foreign stablecoin issuers

The Central Bank of Nigeria (CBN) has set a new capital requirement of N15 billion for companies issuing dollar-backed stablecoins in the country. This regulatory move, announced on November 5, 2026, falls under the new regulations governing virtual assets and digital payment services. The CBN defines Class 2 stablecoins as those pegged to foreign currencies, including the US dollar, and Class 1 stablecoins as those referencing the Nigerian naira.

Class 2 issuers must maintain a minimum paid-up capital of N15 billion on entry and at all times thereafter, while Class 1 issuers must meet a lower capital threshold of N10 billion. The new framework also applies to service providers offering non-security virtual asset services, mandating a minimum capital of N1 billion. The CBN emphasizes that the capital requirement is separate from and additional to issuer reserves, customer funds, and operational liquidity.

Operators failing to meet the minimum capital requirement must notify the CBN immediately and submit a restoration plan within 10 business days. The regulations further stipulate that issuers must hold eligible reserve assets equivalent to at least 100% of outstanding obligations, with an additional two percent buffer to cover potential losses.

The CBN's move is aimed at promoting responsible innovation and strengthening the integrity of Nigeria's financial system while providing a regulatory framework for the growing digital payment instruments industry.