 ▲ Tether (USDT), CNH₮, Yuan, Stablecoin / ChatGPT-generated image |
Tether, the world’s largest stablecoin issuer, has abruptly discontinued its CNH₮ service citing low demand and changing market conditions, initiating a business restructuring focused on strategic prioritization.
According to cryptocurrency media outlet Bitcoinist on February 22 (local time), Tether decided to terminate operations of CNH₮, a stablecoin pegged to the offshore Chinese yuan. The company explained that the move is part of a strategic shift to align its product offerings with actual market usage and community demand. As competition in the stablecoin market intensifies amid volatility in the Bitcoin (BTC) market, the decision is interpreted as an effort to phase out less profitable assets.
Tether plans to carry out the shutdown in two structured phases. Immediately following the announcement, it halted new issuance and minting of CNH₮. For existing holders, redemption services will remain available for one year, with the final redemption deadline set for February 20, 2027. Tether urged users to complete the redemption process as soon as possible before the deadline to avoid potential asset losses.
The primary reason for the discontinuation was cited as extremely low market demand and minimal usage of CNH₮. Launched in September 2019, the token initially drew attention as an alternative source of yuan liquidity in offshore Chinese markets. However, its growth stagnated as it was overshadowed by USDT, which commands an overwhelming market share. Tether stated that it conducted an internal review process and determined that certain assets may be removed from its portfolio if their scale no longer justifies the cost and effort required to maintain the company’s quality standards.
The space left by CNH₮ will be filled by Tether’s core asset USDT and high-growth areas such as tokenization infrastructure. The company plans to concentrate resources on developing financial tools with strong liquidity and long-term relevance. As liquidity in the digital asset market increasingly converges around dollar-backed stablecoins, products linked to less dominant fiat currencies are expected to face further marginalization.
Experts noted that the decision reflects a natural trend in which major issuers streamline inefficient product lines to strengthen market dominance. As the stablecoin ecosystem enters a more mature phase, industry-wide management strategies are shifting toward prioritizing practical utility and profitability over sheer issuance volume. CNH₮ holders are advised to check their balances on exchanges or personal wallets and adhere to official redemption schedules.
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