Tether’s USDT remains the largest stablecoin at $183B as Tether expands into regulated U.S. stablecoins with USA₮.
- Tether’s yuan-pegged stablecoin issuance has been halted immediately, and redemptions will be allowed for 1 year.
- The wind-down comes as Tether shifts toward products with more liquidity and long-term use, such as USA₮, as CNHt use no longer justifies ongoing support.
- Tether is investing more in USDT and expanding regulated offerings like USA₮ under the GENIUS Act framework, along with other efforts to tokenize and build infrastructure.
Tether said it will discontinue support for its offshore Chinese yuan-pegged stablecoin, CNHt, citing low demand, on Thursday.
Tether announced it would immediately stop issuing new CNHt tokens. No more CNHt would be made in the future. CNHt was pegged to the Chinese yuan (CNH).
The announcement says that the wind-down will happen in two stages. Tether said that minting would stop right away, but that it would keep supporting redemptions for a year after the announcement. A reminder will be sent out before the last day to redeem.
The company said the decision came after reviewing its stablecoin options and considering market demand, operational sustainability, and the state of the ecosystem as a whole.
Tether said, "This decision reflects changing market conditions, low interest in the product, and limited sustained community demand for CNHt compared to other supported assets." It also said that the level of use did not justify the ongoing operational support needed to maintain the token at the same standards as its other products.
Holders of CNHt across supported blockchains have been encouraged to redeem their tokens before the deadline. Until the redemption window closed, Tether said it would continue processing redemptions under its existing terms of service.
Amid this decision, Tether CNH (CNHt) traded at $0.013, down 0.04% on Friday. On Stocktwits, retail sentiment around CNHt remained in the ‘neutral territory, as chatter levels remained ‘normal’ over the past days.
The wind-down of CNHt reflected a shift toward products with broader liquidity and sustained market demand, according to the company’s statement.
Focus Shifts To Core Stablecoin Products
Tether made the move as it wanted to focus on stablecoins and infrastructure that showed higher organic adoption and long-term relevance. It focused on improving the liquidity of core stablecoins, building infrastructure for tokenization, and helping global users and builders access new financial tools.
USDT remained the largest stablecoin by market capitalization of $183 billion globally, while Tether recently launched USA₮, a federally regulated, dollar-backed stablecoin designed to operate within the United States’ federal framework established under the GENIUS Act.
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