TLDR:
- Tether will stop CNH₮ issuance immediately and end redemptions after one year due to limited demand.
- The CNH₮ phaseout follows a structured process with advance notice and a fixed redemption deadline.
- Tether said low adoption levels no longer justified ongoing operational and compliance support.
- The company plans to redirect resources toward stablecoins with stronger organic usage and liquidity.
A major stablecoin product is set to exit the market after failing to attract lasting demand. Tether confirmed it will wind down support for its offshore yuan token CNH₮ following an internal review.
The company will stop issuing new tokens immediately and plans to close redemption services within a year. The move signals a shift toward products with stronger usage and long-term sustainability.
CNH₮ Stablecoin Shutdown Marks Strategic Shift
The announcement surfaced through a statement shared by Wu Blockchain, which summarized Tether’s decision to discontinue CNH₮. Tether said market conditions and weak adoption drove the outcome.
According to a company blog post, Tether now reviews each stablecoin based on demand, sustainability, and community usage. CNH₮ no longer met those benchmarks.
Tether will not mint any additional CNH₮ tokens starting immediately. This step locks the circulating supply and prevents further market expansion.
Redemption services will remain active for one year under existing terms. Tether plans to issue a reminder notice before the final deadline.
Tether Refocuses on Core Stablecoin Products
Tether framed the decision as part of a broader effort to concentrate resources on high-usage assets and infrastructure. The firm said it aims to strengthen security, liquidity, and long-term relevance across its supported tokens.
CNH₮ holders can still redeem their tokens until the cutoff date. The company advised customers to act early rather than wait until the deadline.
The statement linked the phaseout to limited community interest and declining practical use compared with other stablecoins. Tether said maintaining operational standards for CNH₮ no longer made economic sense.
The company added that future efforts will center on expanding tokenization tools and core stablecoin liquidity. It positioned the move as a reallocation of technical and compliance resources.
Tether has followed similar structured exits for earlier discontinued products. Each process included advance notice, a fixed redemption window, and continued support during the transition period.
For users, the decision narrows options tied to offshore yuan exposure inside crypto markets. It also reflects how stablecoin issuers now prioritize scale and consistent demand over experimental currency pegs.
The post Tether Ends CNH₮ Stablecoin Support: Here’s Why appeared first on Blockonomi.
Source: https://blockonomi.com/tether-ends-cnh%E2%82%AE-stablecoin-support-heres-why/
