Tether Winds Down CNH-Pegged CNHT Stablecoin Amid Low Demand

Tether has announced the immediate halt of new issuances for its offshore RMB-pegged stablecoin CNHT, with redemptions set to end one year from now. This move reflects waning interest in the product and aligns with tightening regulatory scrutiny in China. Stablecoin traders in Asia now face shifts in their RMB-based strategies.

BitbabyEX's market summary detailed Tether's decision, citing low consumer interest, limited community demand, and insufficient usage to justify ongoing operations. The announcement, dated February 20, 2026, stops minting immediately while giving holders a 12-month redemption window. MEXC reports the discontinuation ties into China's stablecoin restrictions, thinning CNH liquidity as Tether refocuses on core offerings like USDT. TradingView echoes that holders should redeem promptly, noting Tether's structured exit from low-demand assets. AInvest highlights a flow-driven strategy, with USDT supply dipping $1.5 billion recently. Cryptopolitan points to broader implications for RMB trading pairs and RWA pilots, as CNHT bridged offshore yuan needs. Bloomingbit and KuCoin confirm the timeline, emphasizing compliance amid Beijing's crackdown on crypto activities. This isn't isolated; it follows patterns of pruning underutilized products to streamline operations.

Stablecoin traders reliant on CNHT for RMB exposure must pivot to alternatives like other offshore yuan tokens or USDT pairs, potentially disrupting Asian trading volumes. It accelerates a shift toward dominant stablecoins, impacting RWA experiments in China and forcing adaptation in cross-border finance.

Tether's CNHT shutdown underscores the realities of niche stablecoin viability under regulatory pressure. Traders should assess exposures and explore robust alternatives. This calculated retreat positions Tether to fortify its market leadership elsewhere.

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