CBN Introduces ₦15 Billion Capital Requirement For Dollar-Backed Stablecoin Issuers

The Central Bank of Nigeria (CBN) has introduced new capital requirements for companies issuing stablecoins in the country, directing operators of naira-backed digital currencies to maintain a minimum paid-up capital of ₦10 billion, while issuers of foreign-currency-backed stablecoins must have at least ₦15 billion.

According to Bush Radio Academy, the new requirements were contained in a circular dated November 5, 2026, with reference number PSP/DIR/PUB/CIR/001/004, signed by the Director of Payments Systems Policy, Musa Jimoh.

Under the guidelines, companies issuing stablecoins designed to maintain their value against the naira fall under Class 1 and are required to maintain a minimum paid-up capital of ₦10 billion. Meanwhile, Class 2 issuers, whose digital currencies are backed by foreign currencies such as the United States dollar, must maintain at least ₦15 billion.

The apex bank stressed that the capital requirements must be met before companies commence operations and maintained throughout their period of operation. It also stated that offshore companies seeking to operate in Nigeria would not be exempted from incorporation, licensing or minimum capital obligations.

The CBN further explained that both categories of stablecoin issuers must comply with the applicable capital deposit requirements and provide the necessary evidence and supplementary documentation.

The new regulatory framework also covers other digital tokens used for payments, transfers and financial transactions, including Deposit Money Tokens (DMTs) and activities carried out by Virtual Asset Service Providers (VASPs).

Explaining the rationale behind the guidelines, the apex bank acknowledged that stablecoins and other virtual assets could improve payment services, international remittances, business transactions and access to financial services.

However, it warned that the growing adoption of digital assets could also pose risks to financial stability, monetary policy, consumer protection, foreign exchange management and efforts to combat money laundering and terrorism financing.

The bank said the regulations were introduced as part of its responsibility to safeguard monetary and financial stability while ensuring proper supervision of Nigeria’s payment system.

The framework establishes requirements covering licensing, corporate governance, financial strength, customer protection, cybersecurity and reporting obligations for companies operating within the non-security virtual asset sector.

A major aspect of the new guidelines focuses on peer-to-peer (P2P) cryptocurrency trading, where individuals buy, sell or exchange digital assets directly with one another.

The CBN directed virtual asset providers to introduce measures for identifying customers who regularly engage in P2P transactions as a business. Operators are expected to consider factors such as transaction volumes, frequency, the number of people involved and whether customers publicly advertise exchange rates.

Companies are also required to subject identified P2P business operators to stricter verification procedures and transaction limits, while reporting such customers to the apex bank in accordance with the guidelines.

The CBN clarified that being identified as a regular P2P trader does not automatically authorise an individual to operate a regulated virtual asset business.

It stated that individuals whose activities require regulatory approval must obtain the appropriate licence, discontinue the activity or operate as authorised agents of licensed providers, subject to the applicable requirements.

According to the apex bank, the measures are intended to strengthen oversight of digital asset transactions and prevent cryptocurrency platforms from being exploited for money laundering, terrorism financing and other illicit financial activities.

The new guidelines represent a significant tightening of regulatory oversight in Nigeria’s virtual asset sector, particularly for stablecoin issuers and businesses involved in cryptocurrency transactions.