Eleven point one six million dollars. That is the minimum paid-up capital the Central Bank of Nigeria is now demanding from any foreign-currency stablecoin issuer that wants to operate in Africa's largest crypto market. The CBN released the new rules on Thursday, setting a ₦15 billion threshold for companies behind dollar-pegged tokens like USDT and USDC, and a separate ₦10 billion floor for issuers of naira-backed stablecoins.
The framework is not a suggestion. Foreign issuers must establish locally incorporated, licensed entities in Nigeria and meet the CBN's capital, reserve, and operational requirements. Existing foreign regulatory approvals will not count as a substitute. Companies that do not comply risk losing access to the market entirely. Issuers must also hold reserves backing their tokens, create clear redemption arrangements for customers, and submit monthly reserve attestations to the regulator.
The timing is deliberate. Three months ago, in August, the CBN opened the second cohort of its regulatory sandbox and created a dedicated track for stablecoin issuers to test products under supervision for the first time. That sandbox signaled that formal rules were coming. These are them.
What makes this moment particularly pointed is that major issuers are already moving toward Nigeria at the same time regulators are tightening their grip. Tether, the El Salvador-based company behind USDT, was recruiting an Expansion Manager in Nigeria as recently as August. This week, Circle, the US company that issues USDC, named Gillian Darko, a former strategy executive at Yellow Card, as its Vice President and Head of Africa.
Nigerians use stablecoins daily to send money across borders, settle payments, and access the dollar in an economy where that access is not always straightforward. The question now is whether the biggest players will build local structures to stay in that market, or whether the cost of compliance will make them hesitate.
Originally published by TechCabal.