- Tether will discontinue its offshore yuan stablecoin CNH₮, stopping new issuance immediately.
- Redemption support for CNH₮ will end one year after the announcement, with holders urged to redeem early.
- The shutdown follows weak adoption and limited market demand that no longer justifies operational costs.
Tether announced it will discontinue support for its offshore yuan stablecoin CNH₮ after reviewing market demand and product sustainability. The company said the decision follows weak adoption and changing market conditions.
Effective immediately, Tether has stopped all new CNH₮ issuance and no additional tokens will be minted going forward.
The company will continue redemption services for one year from the announcement. After that deadline, redemption support will end. Interestingly, the stablecoin was launched in September 2019 with initial availability only on Ethereum.
Tether said it will issue a reminder notice before the final cutoff and advised holders to redeem their tokens as soon as possible.
The transition follows a structured process similar to earlier product shutdowns.
“CNH₮’s usage levels don’t justify the continued operational support required to maintain it at the standards Tether applies across its products,” Tether said.
Low demand and scale drove the decision
Tether said CNH₮ failed to show sustained community interest compared with other supported assets. The company reviewed usage data, operational costs, and long-term viability before deciding to end support.
The firm added that CNH₮’s scale no longer justifies the resources required to maintain security and operational standards. The company said it prioritizes products with strong adoption and long-term relevance.
The shutdown comes at a time when Tether plans to focus on stablecoins and infrastructure that show organic demand and higher usage across global markets.
Until the redemption deadline, CNH₮ will remain fully redeemable under Tether’s terms of service across all supported blockchains.
Related: Tether Launches Public Directory for USD₮ Ecosystem
Core stablecoin and tokenization growth
Tether said it will redirect resources toward core stablecoin liquidity, tokenization infrastructure, and new financial tools. The company aims to strengthen products that support global payments, blockchain finance, and digital asset settlement.
The firm said community demand guides product decisions. It evaluates market conditions and ecosystem needs before launching or maintaining any token.
The CNH₮ shutdown shows a change in favor of fewer but higher-demand products. The company said the goal is to improve security, reliability, and long-term product performance.
CNH₮ holders must redeem their tokens before the one-year deadline. After that date, Tether will stop redemption services. The decision removes one of the few offshore yuan-pegged stablecoins from active support.
Related: Tether Announces $100 Million Strategic Equity Investment in Anchorage Digital
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Source: https://coinedition.com/tether-discontinues-support-for-cnh%E2%82%AE-shifting-strategy/
