Tether Pulls CNH₮: A Strategic Exit from the Offshore Yuan Stablecoin Market

Tether Ends CNH™ Support

Tether Holdings announced the immediate halt of its offshore yuan‑pegged stablecoin CNH™. Launched in December 2022, the token was meant to give digital exposure to the CNH market. The company cites insufficient scale and weak demand as the primary reason for the withdrawal. New issuance stops now, while redemptions will be honored for one year.

Market Impact and Demand Factors

CNH™ failed to achieve the liquidity and network effects that sustain USDT, whose market cap exceeds $110 billion. Existing efficient CNH trading infrastructure and China’s own e‑CNY reduced the need for a private yuan‑stablecoin. Geopolitical tensions and capital controls further limited its attractiveness. The move highlights how stablecoins must demonstrate clear utility to survive.

Strategic Outlook and Industry Trends

Experts view the shutdown as a pragmatic portfolio shift rather than a failure. Tether will reallocate resources to core products such as USDT and EURT. The decision reflects a broader industry trend of focusing on proven, regulator‑ready offerings ahead of tighter rules expected in 2025. It also signals limited space for niche, region‑specific stablecoins.