CBN Introduces N15bn Capital Benchmark for Dollar-Backed Stablecoin Operators

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has introduced a minimum capital requirement of N15 billion for companies seeking to issue foreign currency-backed stablecoins, including digital currencies such as USDT and USDC, as part of efforts to regulate the country’s growing virtual asset market.

The apex bank disclosed this in its new 169-page Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued on Thursday, November 5, 2026, and signed by Mr Musa Jimoh, Director of its Payments System Policy Department.

Under the new regulation, companies intending to issue stablecoins backed by foreign currencies, particularly the US dollar, must have a minimum paid-up capital of N15 billion before commencing operations in Nigeria.

The regulation establishes a risk-based framework for virtual asset operators, with the objectives of strengthening financial system integrity, protecting customers and promoting responsible innovation in Nigeria’s digital payment ecosystem.

According to the apex bank, the framework covers the licensing and authorisation of stablecoin issuers, virtual asset service providers, deposit money token operators and virtual asset payment service providers.

It also extends to platform-facilitated peer-to-peer transactions, custody, transfers, remittances, clearing and settlement activities.

The CBN said the regulation introduces requirements for capital adequacy, reserve backing, liquidity and redemption, corporate governance, risk management, cybersecurity and operational resilience.

A major objective of the framework is to ensure that stablecoin issuers have sufficient financial capacity and adequate reserves to meet their obligations to customers.

By introducing capital, reserve-backing and redemption requirements, the central bank wants to strengthen confidence in stablecoins and reduce risks associated with poorly managed virtual asset operations.

The regulation also provides for the safeguarding of reserve assets and customer funds, alongside improved disclosures, customer protection and complaints management.

On financial security, the CBN requires regulated operators to comply with anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations.

Other requirements 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 framework also provides for regulatory reporting, supervisory access, information sharing, administrative sanctions and orderly wind-down arrangements for operators unable to continue their businesses.

The apex bank explained that the regulation applies to persons carrying out regulated activities in or from Nigeria, directing such activities at Nigerians or undertaking operations capable of materially affecting the country’s payment system, financial system, foreign exchange market or broader economy.

It also clarified that the new regulation does not override the statutory responsibilities of the Securities and Exchange Commission (SEC).

The lender stated that virtual assets classified as securities, investment contracts or other capital-market products would remain subject to the applicable capital-market 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 central bank directed affected financial institutions, issuers, service providers, operators, promoters and other stakeholders to familiarise themselves with the new requirements and ensure full compliance.

It specifically urged operators to comply with applicable licensing, authorisation, prudential, operational, reporting, anti-money laundering, customer-protection and technology requirements.