CBN sets N15bn capital requirement for dollar stablecoins

The Central Bank of Nigeria (CBN) has set a minimum capital requirement of N15 billion for companies issuing dollar-backed stablecoins, as outlined in new regulations governing virtual assets and digital payment services in Nigeria. The capital requirement, which applies to Class 2 stablecoins, is part of a new set of regulations released by the apex bank following a circular signed by the Director of the Payments System Policy Department, Musa Jimoh.

For issuers of naira-referenced stablecoins, known as Class 1, the minimum capital requirement is lower at N10 billion. The regulations also prescribe that other virtual asset service providers must maintain at least N1 billion in paid-up capital, separate from funds committed to licenses issued by other regulatory authorities. The CBN stated that the capital requirements are designed to reflect the varying financial and operational risks associated with the activities of these issuers and service providers.