Tether announced it will discontinue support for its offshore yuan stablecoin CNH₮, citing low demand and limited community adoption.
Summary
- Tether stops CNH₮ minting immediately, citing low demand and adoption.
- Redemptions remain open for one year before full shutdown.
- Resources shift toward USDT and core stablecoin infrastructure.
The company will cease all new token issuances effective immediately, while redemption support will end one year from the announcement date with a prior reminder notice.
The decision is a result of changing market conditions where CNH₮’s usage levels no longer justify the operational support required to maintain it at Tether’s standards.
Holders across all supported blockchains are informed to redeem their tokens as soon as possible before the redemption deadline. Until that date, Tether will continue redeeming CNH₮ under its terms of service.
Two-phase sunset mirrors prior Tether discontinuations
The structured transition follows a process similar to previous Tether product sunsets. Phase one began immediately with the halt of all new CNH₮ minting. No additional tokens will enter circulation going forward.
Phase two commences one year after the announcement, when Tether discontinues redemption support entirely.
A separate reminder notice will alert holders ahead of the final deadline. The timeline provides users sufficient opportunity to exit positions without rushing into unfavorable market conditions.
CNH₮ launched as a stablecoin pegged to China’s offshore yuan, joining Tether’s portfolio of fiat-backed tokens.
The offshore yuan trades separately from the onshore yuan used within mainland China, making it accessible to international traders and institutions.
Tether refocuses resources on high-adoption stablecoins
The company will redirect efforts toward stablecoins and infrastructure that show strong organic adoption and long-term relevance.
Focus areas include advancing core stablecoin liquidity, expanding tokenization infrastructure, and supporting new financial tools serving global users and developers.
Tether’s dominant product remains USDT, the largest stablecoin by market capitalization at approximately $185 billion.
The CNH₮ discontinuation follows Tether’s overall strategy of allocating resources where the. across the digital asset sector.
Tether suffered data breaches in recent years exposing customer contact information. The company maintains headquarters in El Salvador with a base in Switzerland.
The company also expanded its workforce to 300 employees with plans to add another 150 staff over 18 months, mostly engineers.
Source: https://crypto.news/tether-to-wind-down-offshore-yuan-stablecoin/
