|
Getting your Trinity Audio player ready...
|
- Tether has officially halted the creation of new CNH₮ tokens as of Feb 20, 2026.
- Low user adoption and trading volume made the offshore yuan token’s maintenance “impractical.”
- Users have exactly one year to redeem existing CNH₮ tokens before support ends.
Tether has announced it will discontinue its offshore Chinese yuan stablecoin, CNH₮. The company, which operates the world’s largest stablecoin ecosystem, officially halted the minting of new CNH₮ tokens on February 20, 2026.
While the decision marks the end of a long-standing product, it reflects a broader industry trend where liquidity and user adoption dictate survival. Despite the ambitious goal of providing a digital bridge to the offshore yuan, CNH₮ struggled to find its footing in a market dominated by dollar-pegged assets.
Low Demand Drives the Exit
Launched in 2019 to cater to traders seeking exposure to the Chinese currency outside of mainland regulations, CNH₮ never managed to replicate the explosive success of its sibling, USDT. Maintaining a stablecoin requires constant technical upkeep, security monitoring, and liquidity management. For Tether, the operational costs of sustaining CNH₮ eventually outweighed its benefits.
Tether’s internal reviews revealed that trading activity remained stagnant, failing to meet the threshold required for long-term viability. As the stablecoin sector becomes increasingly competitive—and more heavily regulated under frameworks like the U.S. GENIUS Act—issuers are choosing to consolidate their resources into high-growth, high-utility assets.
A One-Year Grace Period for Redemptions
Tether isn’t pulling the plug overnight. The company has established a clear roadmap for current holders to exit their positions safely. While no new tokens can be created, redemption support will remain active for the next 12 months.
Users possessing CNH₮ are being urged to facilitate their redemptions through the official platform as soon as possible. After the one-year deadline, support will be fully terminated, making it critical for investors to act within this window.
Also Read: Tether Loads Up on $122B in Treasuries as Bitcoin Slides — What It Means
Doubling Down on the “Digital Dollar”
By shedding underperforming products like CNH₮, Tether is signaling a commitment to its primary mission: cementing USDT as the backbone of the global digital economy. The company plans to redirect the freed-up resources toward enhancing its core infrastructure and developing new financial tools that align with actual market demand.
This move highlights a “quality over quantity” approach. In 2026, the stablecoin landscape is no longer just about offering many currencies; it’s about providing the deepest liquidity and most reliable settlement for a global community that overwhelmingly prefers the digital dollar.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
