Tether, the issuer of the world’s largest stablecoin, USDT, is set to halt operations for its offshore yuan stablecoin, known as CNH₮. This decision comes as a direct response to the significantly low demand observed for the digital asset.
In a statement released on February 21, 2026, Tether officials noted that the decision was influenced by market dynamics and an overall lack of traction for CNH₮ among users and traders alike. Over the past few months, interest in the yuan-backed stablecoin has dwindled, prompting the company to reevaluate its strategy in the ever-evolving cryptocurrency landscape.
CNH₮, designed primarily for users looking to transact in offshore Chinese yuan, was launched as part of Tether’s broader effort to diversify its offerings beyond USDT. It aimed to tap into the growing demand for stablecoins tied to various fiat currencies, especially in regions where the yuan is increasingly utilized in cross-border transactions.
However, market analysts have indicated that factors such as regulatory challenges, competing stablecoins, and changing trading habits have adversely impacted the performance of CNH₮. As stablecoins continue to gain prominence, consumers have shown a clear preference for the more established USDT and a handful of other notable players in the market.
As Tether pivots away from CNH₮, the company remains committed to supporting its flagship product, USDT, which has maintained its position as a cornerstone of cryptocurrency trading volumes globally. USDT continues to provide liquidity on numerous exchanges, affirming its role as the de facto stablecoin for traders and investors.
The discontinuation of CNH₮ does not come as a complete surprise to industry observers, as many have predicted challenges for stablecoins that cater to narrower markets. Moreover, the winding down of the yuan-backed stablecoin illustrates Tether’s strategic flexibility, allowing it to allocate resources more effectively in response to market demands.
Despite this setback, Tether assures its user base that they will take all necessary steps to ensure a smooth transition for those who previously utilized CNH₮. Details regarding the timeline for the wind down and any potential next steps for existing holders are expected to be shared shortly.
As the cryptocurrency market continues to mature, stablecoin strategies will likely adapt to changing sentiments and regulatory environments. Tether’s actions serve as a reminder of the volatile and rapidly evolving nature of digital assets, where only those that can sustainably meet market demands are poised for long-term success.
