CBN sets N10bn, N15bn capital requirements for stablecoin issuers

By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) has introduced new regulatory guidelines for stablecoin issuers and other virtual asset service providers, setting minimum paid-up capital requirements of N10 billion and N15 billion for two categories of operators. The requirements are 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 new guidelines, Class 1 licensed issuers, covering naira-referenced stablecoins, are required to maintain a minimum paid-up capital of N10 billion, while Class 2 issuers, covering foreign currency-referenced stablecoins, must maintain N15 billion. The bank said the capital requirements must be maintained at entry and throughout the period of operation, adding that it reserves the right to prescribe higher amounts.

It also ruled out exemptions for offshore issuers, stating that all operators must comply with Nigerian incorporation, licensing and capital requirements. “Both classes shall comply with the capital deposit and corresponding evidence and supplementary requirements in Section 17. There is no offshore issuer exemption from incorporation, licensing or capital,” the circular stated.

The CBN explained that Class 1 stablecoins are digital tokens designed to maintain a stable value against the naira, while Class 2 stablecoins are pegged to foreign currencies, including the US dollar. The apex bank said the growing use of virtual assets, stablecoins and tokenised payment instruments presented opportunities for innovation in payments, remittances, settlements and digital commerce.

It, however, warned that their increasing adoption also posed risks to financial stability, monetary policy, consumer protection, foreign exchange management and efforts to combat illicit financial activities. According to the bank, the guidelines establish a risk-based framework for licensing, regulating, supervising and overseeing non-security virtual assets, including stablecoins, Deposit Money Tokens (DMTs) and related Virtual Asset Service Providers (VASPs).

It said the framework was designed to support responsible innovation while safeguarding the integrity, stability and efficiency of Nigeria’s financial system. The guidelines also prescribe requirements covering corporate governance, prudential standards, consumer protection, operational resilience, anti-money laundering and counter-terrorism financing, as well as reporting obligations.

On peer-to-peer (P2P) transactions, the CBN directed virtual asset providers to establish criteria for identifying customers who buy, sell or exchange regulated tokens as a business. The criteria, which must be approved by the providers’ boards and communicated to the CBN, are expected to consider transaction volumes, frequency, number of counterparties and advertisement of exchange rates.

The bank further directed providers to apply enhanced due diligence and transaction limits to such customers and report them to the regulator. It warned that identifying a customer as a business operator would not automatically authorise the person to conduct regulated activities. Such customers, it said, must obtain the appropriate licence or authorisation, cease the activity or operate as agents of licensed providers, as directed by the bank.

The CBN said the regulations were also intended to preserve the effectiveness of monetary policy instruments and strengthen its capacity to monitor capital flows and foreign exchange movements. Other objectives include protecting consumers against issuer insolvency, mismanagement of reserves or backing assets, denial of redemption, fraud and other risks.

The guidelines apply to naira-referenced stablecoins, foreign currency-referenced stablecoins, Deposit Money Tokens and other designated tokens that fall within the CBN’s regulatory mandate over payments, settlements, foreign exchange, banking and financial stability.