Tether Ditches Low-Demand CNHt Stablecoin Amid Shift to Regulated USDT

Tether has announced it will discontinue support for its offshore Chinese yuan-pegged stablecoin, CNHt. The decision comes after reviewing its stablecoin options and considering market demand, operational sustainability, and the state of the ecosystem as a whole.

The wind-down process will happen in two stages: minting will stop immediately, but redemptions will be allowed for one year after the announcement. Tether said that the level of use did not justify the ongoing operational support needed to maintain CNHt at the same standards as its other products.

USDT remains the largest stablecoin by market capitalization at $183 billion globally, while Tether is investing more in USDT and expanding regulated offerings like USA₮ under the GENIUS Act framework. The company said it will focus on improving liquidity of core stablecoins, building infrastructure for tokenization, and helping global users and builders access new financial tools.

Holders of CNHt across supported blockchains have been encouraged to redeem their tokens before the deadline. Until the redemption window closed, Tether would continue processing redemptions under its existing terms of service. The move reflects a shift toward products with broader liquidity and sustained market demand.