Tether announced it will discontinue support for its offshore yuan stablecoin CNH₮, citing low demand and limited community adoption. Tether stops CNH₮ minting immediately, citing low demand and adoption. Redemptions remain open for one year before full shutdown. 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. Phase one began immediately with the halt of all new CNH₮ minting.
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. 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’s dominant product remains USDT, the largest stablecoin by market capitalization at approximately $185 billion. The structured transition follows a process similar to previous Tether product sunsets. The timeline provides users sufficient opportunity to exit positions without rushing into unfavorable market conditions. Tether has announced it will discontinue support for its offshore yuan stablecoin CNH₮, citing low demand and limited community adoption.
Minting of CNH₮ stops immediately, while redemptions remain available for one year before a full shutdown. The company will also halt all new issuances immediately, with redemption support ending one year from the announcement date, accompanied by a reminder notice. The decision stems from changing market conditions where CNH₮ usage no longer justifies the operational costs to maintain it to Tether’s standards. Holders on all supported blockchains are urged to redeem tokens ahead of the deadline, and CNH₮ redemptions will proceed under existing terms until the deadline.
Phase one started immediately with the halt of new CNH₮ minting; phase two begins one year after the announcement when redemption support ends. CNH₮ was launched as a stablecoin pegged to China’s offshore yuan, offering access to international traders separate from the onshore yuan. Tether notes that USDT remains the dominant stablecoin by market cap, and the sunset follows a structured transition similar to prior Tether product sunsets, giving users ample time to exit positions without rushing.
Leave a Reply