CBN Sets ₦15bn Minimum Capital Requirement for Foreign Currency-Backed Stablecoin Issuers

The Central Bank of Nigeria (CBN) has introduced a minimum paid-up capital requirement of ₦15 billion for companies seeking to issue foreign currency-backed stablecoins in Nigeria, including digital currencies such as USDT and USDC.

The requirement is part of a new regulatory framework designed to strengthen oversight of Nigeria’s growing virtual asset market and improve confidence in digital financial services.

The apex bank announced the policy in its 169-page Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued on Thursday, November 5, 2026.

The document was signed by Musa Jimoh, Director of the CBN’s Payments System Policy Department.

Under the new rules, companies intending to issue stablecoins backed by foreign currencies, particularly the US dollar, must meet the ₦15 billion minimum paid-up capital threshold before commencing operations in Nigeria.

The regulation also establishes requirements for licensing, authorisation, capital adequacy, reserve backing, liquidity management and redemption arrangements.

According to the CBN, the framework is intended to protect customers, strengthen financial system integrity and encourage responsible innovation within Nigeria’s emerging digital payment ecosystem.

What the new CBN regulation means for stablecoin operators

Beyond the capital requirement, the regulation covers a broad range of virtual asset activities, including stablecoin issuance, virtual asset service provision, deposit money token operations, custody, transfers, remittances, clearing and settlement.

It also addresses payment services, platform-facilitated peer-to-peer transactions and other activities involving non-security virtual assets.

The CBN said regulated operators must maintain adequate financial resources and reserves to meet their obligations to customers.

Other requirements cover corporate governance, risk management, cybersecurity, operational resilience and the safeguarding of reserve assets and customer funds.

The framework also introduces measures aimed at improving transparency, customer protection, disclosure standards and complaints management.

On financial crime prevention, regulated companies will be required to comply with anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations.

These include sanctions screening, transaction monitoring, blockchain analytics and compliance with the Travel Rule, which requires relevant information about virtual asset transfers to accompany transactions between service providers.

The regulation further provides for regulatory reporting, supervisory access, information sharing, administrative sanctions and orderly wind-down arrangements for operators that can no longer continue their businesses.

The CBN explained that the rules apply to businesses conducting regulated activities in or from Nigeria, targeting Nigerian customers or carrying out operations capable of materially affecting the country’s payment system, financial system, foreign exchange market or wider economy.

CBN clarifies SEC’s regulatory role

The apex bank also clarified that the new framework does not remove or override the statutory responsibilities of the Securities and Exchange Commission (SEC).

Virtual assets classified as securities, investment contracts or other capital-market products will remain subject to the applicable SEC regulatory framework.

“Where an activity involves both Non-Security Virtual Assets and matters falling within another authority’s mandate, the relevant approvals shall be obtained from each competent authority,” the CBN stated.

The bank directed financial institutions, stablecoin issuers, virtual asset service providers, promoters and other affected stakeholders to familiarise themselves with the new requirements and ensure compliance.

It specifically emphasised the need to meet applicable licensing, prudential, operational, reporting, anti-money laundering, customer-protection and technology standards.

The new framework represents a significant development in Nigeria’s approach to regulating digital financial services, particularly stablecoins and other virtual assets operating outside the traditional banking system.