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Tether to wind down CNH₮ as demand falls
Tether has announced it will discontinue support for its offshore yuan stablecoin, CNH₮, citing persistently low demand and limited market adoption. The company will halt minting immediately and keep redemption windows open for one year to allow users sufficient time to exit positions safely. This move reflects Tether’s strategy to focus resources on high-adoption stablecoins and core stablecoin infrastructure such as USDT.
Immediate halt to minting; redemptions remain for 12 months
Under Tether’s phased wind-down, no new CNH₮ tokens will be issued from today. Holders across all supported blockchains are urged to redeem their CNH₮ tokens under Tether’s redemption terms. Redemption support will remain available for one year from the announcement, after which Tether will fully discontinue support following an additional reminder notice to holders.
Why Tether is sunsetting CNH₮
The company attributed the decision to evolving market conditions: CNH₮’s usage levels no longer justify the operational overhead required for maintaining the token to Tether’s standards. The offshore yuan (CNH) trades separately from the onshore CNY and was introduced to give international traders and institutions exposure to China’s offshore currency. However, adoption remained limited compared with Tether’s flagship stablecoin, USDT.
Resources redirected to USDT and infrastructure
Tether said it will reallocate engineering and operational resources toward products and infrastructure with stronger organic adoption. Key focus areas include enhancing stablecoin liquidity, expanding tokenization infrastructure, and building new financial tools for global users and developers. USDT remains Tether’s dominant product, with a market capitalization near $185 billion, and will continue to receive primary attention.
Phased sunset mirrors previous product retirements
The two-phase sunset follows the same approach Tether used for earlier product discontinuations: an immediate stop to minting followed by a delayed end to redemptions. The staged timeline is designed to give holders enough time to unwind positions without being forced into unfavorable market conditions.
Operational notes and company background
In recent years Tether experienced data breaches that exposed customer contact information, and the company maintains headquarters in El Salvador with a base in Switzerland. Tether currently employs about 300 people and has publicly stated plans to recruit roughly 150 more staff, primarily engineers, over the next 18 months to support its remaining stablecoin operations and infrastructure efforts.
For CNH₮ holders: begin redemption procedures promptly to avoid last-minute market pressure. Monitor Tether announcements for the reminder notice ahead of the final shutdown date.
Source: crypto
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