A coin is distributed capital (7)
I believe the answer is:
nicosia
'capital' is the definition.
(capital of Cyprus)
'a coin is distributed' is the wordplay.
'distributed' indicates an anagram.
'a'+'coin'+'is'='acoinis'
'acoinis' is an anagram of 'NICOSIA'.
(Other definitions for nicosia that I've seen before include "Divided Cypriot capital" , "European Union's most southerly capital" , "Divided city of Cyprus" , "Largest city on Cyprus" , "Casino I find in Cyprus - that's capital" .)