CBN mandates ₦15 billion capital for foreign-currency stablecoins

The Central Bank of Nigeria (CBN) has established a new regulatory framework for non-security virtual assets, mandating that issuers of foreign-currency stablecoins must maintain a minimum paid-up capital of ₦15 billion. This requirement is outlined in the Regulations for the Operations of Non-Security Virtual Assets in Nigeria.

Class 2 stablecoin issuers, which reference currencies other than the naira, must adhere to this capital requirement at all times. In contrast, issuers of naira-referenced stablecoins (Class 1) must hold ₦10 billion, while other service providers must maintain a minimum of ₦1 billion.

The regulations stipulate that the required capital must be held as cash in a designated account at the CBN or as Federal Government of Nigeria securities. Additionally, issuers must be incorporated in Nigeria and have a resident Chief Compliance Officer.

Class 2 issuers are subject to further liquidity rules to ensure they can meet Nigerian redemption requests.