Tether, the issuer of the largest U.S. dollar stablecoin USDT, said it will discontinue support for its offshore Chinese yuan token CNH₮, citing limited market demand among other factors. The company also stated it will terminate redemption of CNH₮.
What Is CNH₮?
CNH₮ is a fiat-referenced stablecoin designed to track the value of the offshore Chinese yuan (CNH), which is the version of China’s currency traded outside the mainland. The token was part of Tether’s broader lineup of non-USD stable assets alongside offerings linked to the euro and other currencies.
Why Tether Is Making the Change
According to the company, the decision to end support for CNH₮ reflects insufficient market demand for the product. Winding down the token suggests a continued focus on higher-liquidity stablecoins, particularly those pegged to the U.S. dollar, which dominate stablecoin trading and usage.
Market Impact and Next Steps
The discontinuation means new issuance will cease and redemptions for CNH₮ will be terminated. Market participants may see reduced liquidity for CNH₮ on exchanges as support winds down. Tether did not disclose additional operational details in the announcement.
Context
Stablecoins are crypto tokens designed to maintain a stable value by referencing traditional assets such as fiat currencies. While USDT remains the market leader by a significant margin, non-USD fiat stablecoins have seen comparatively limited adoption. The phase-out of CNH₮ underscores the challenges for niche currency-pegged tokens in a market concentrated around dollar-based liquidity.