Tether To Terminate Offshore Yuan (CNH₮) Operations – Here’s Why
Stablecoin operator Tether has announced its decision to discontinue support for its offshore Chinese Yuan token CNH₮. The USDT operator has attributed this development to a lack of market demand, among other points.
Tether To Terminate CNH₮ Redemption In One Year
In a recent blog post, Tether shared a strategic update on its CNH₮, communicating a management decision to withdraw the stablecoin product from its offerings. This decision is based on multiple factors centered around demand and operational efficiency.
A statement from the announcement read:
Community interest and adoption are central to every product decision we make. When evaluating whether to maintain or introduce a Tether token, we assess market demand, operational sustainability, and broader ecosystem conditions that influence long-term usability. Our priority is to allocate resources where they can most effectively enhance security, reliability, and innovation across the digital asset landscape.
Tether explains that the CNH₮ recorded low interest, adoption, and community demand compared to their products, thereby failing to produce an acceptable return on technical and operational efforts.
As of this moment, all new issuance of CNH₮ has been halted. Meanwhile, CNH₮ users will have the next year to process any redemptions before the stablecoin is permanently phased out. The stablecoin operator will issue another reminder ahead of the redemption deadline. Following this development, Tether reiterates its commitment to stablecoin global growth and adoption.
The statement read:
Tether will continue to focus its efforts on stablecoins and infrastructure that demonstrate strong, organic adoption and long-term relevance. This includes advancing core stablecoin liquidity, expanding tokenization infrastructure, and supporting new financial tools that better serve global users and builders.
Tether remains the operator of the world’s largest stablecoin, USDT, which presently boasts a total market cap of $183.7 billion. In January, the stablecoin company launched USAT, designed specifically for American users.
Nigeria Leads Demand For Stablecoins
In other news, a recent survey by BVNK has revealed that Africa’s largest economies are leading the demand for stablecoins. This survey, done in collaboration with Coinbase, YouGov, and Artemis, involved 4658 adults across 15 countries. The results revealed that 80% of Nigerian and South African respondents presently hold stablecoin, while 75% aim to increase holdings as citizens seek a haven from their local fragile currencies.
At press time, the total stablecoin market cap is valued at $310 billion, with high expectations of future market expansion following the approval of the GENIUS Act last July.
Featured image from Flickr, chart from Tradingview
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