Tether winds down CNHT amid SEC 2% haircut guidance

Tether ends CNHT issuance; redemption ends in one year

Tether will cease the issuance and redemption of its offshore Chinese yuan stablecoin, CNHT, with redemptions permitted for one year from the public announcement. The product is being wound down on a defined timeline.

Coverage of the company’s notice indicates the change takes immediate effect for new issuance and sets a one-year cutoff for redemptions, according to KuCoin. The wind-down targets an orderly exit from a low-usage product.

Editorial note: Tether described the operational timeline directly in its notice. Tether said the company has “halted new CNHT issuance” and will “end redemptions one year after the announcement,” as summarized by KuCoin.

Why Tether is discontinuing the offshore Chinese yuan stablecoin

Tether’s rationale centers on weak product traction relative to maintenance costs, as reported by Ainvest. Reported reasons include low demand, changing market conditions, and a scale of usage that no longer justifies ongoing support.

Analyst summaries frame this as resource reallocation toward higher-adoption stablecoins and core offerings, again per Ainvest’s coverage. The decision fits a broader pattern of issuers discontinuing underused assets to reduce operational overhead.

Holders retain a one-year redemption window under the issuer’s stated terms. Third-party support may vary, so timelines for wallet and exchange processing could shorten before the final cutoff.

Commentary summarizing the notice encourages early redemption to mitigate liquidity or counterparty frictions near the deadline, per KuCoin’s write-up. Exchange trading pairs may be delisted during the wind-down, which can constrain secondary-market exits.

At the time of this writing, available market data indicated CNHT at 0.01360. This figure is contextual and does not imply stability, convertibility, or any outcome for redemption pricing.

Regulatory context: SEC’s 2% haircut and oversight signals

What the SEC’s 2% haircut changes for broker-dealers

The U.S. Securities and Exchange Commission issued guidance permitting broker-dealers to apply a 2% “haircut” to payment stablecoins for net capital calculations, replacing the prior 100% treatment, according to PANewsLab. This narrows capital deductions on qualifying balances and signals evolving supervisory views on stablecoin risk-weighting.

While unrelated to CNHT specifically, the shift suggests regulators are refining frameworks for payment stablecoins held by U.S. intermediaries. Market structure and custody policies may continue to evolve as guidance matures.

As of publication, there is no official public comment from the People’s Bank of China on the CNHT discontinuation. Any policy interpretation therefore remains limited to publicly available issuer and media materials.

FAQ about Tether CNHT discontinuation

How can CNHT holders redeem during the one-year window and what happens if they miss it?

Redeem via the issuer under existing terms during the stated one-year period. After the cutoff, redemptions end; holders may face illiquidity if secondary markets or exchanges no longer support CNHT.

What does the SEC’s 2% haircut guidance mean for broker-dealers and payment stablecoins in practice?

It reduces net capital deductions on qualifying payment stablecoin balances from 100% to 2%, per the guidance, potentially easing balance sheet impact while signaling tighter, more formal oversight going forward.