Tether, the issuer of the world's dominant stablecoin USDT, has announced it will wind down support for its offshore Chinese yuan-pegged stablecoin, CNH₮ (CNHT). The company has immediately halted the minting of new CNH₮ tokens and will completely cease redemption support one year from the announcement date, around February 2027. Users holding the token have been advised to redeem their assets as soon as possible, with Tether committing to provide a prior reminder before the final deadline.
The decision was driven by persistently low trading activity and limited user adoption of CNH₮ since its launch. Tether stated that the current scale of usage no longer justifies the ongoing technical support and maintenance resources required to uphold its operational standards. In a strategic shift, the company will reallocate these resources toward products with stronger, organic adoption and clearer growth prospects.
"Tether continuously reviews its product offerings and adjusts according to real-world market usage," the company explained, noting that CNH₮ simply did not reach the level needed for its long-term plans. This move underscores the increasing competitiveness within the stablecoin sector, where only the most widely accepted and trusted assets tend to thrive.
Looking forward, Tether emphasized its commitment to strengthening its core stablecoin ecosystem, particularly USDT, and developing its tokenization infrastructure. The company aims to focus on creating sustainable financial tools for its global community, moving away from niche products with limited traction.
