Stablecoin operator Tether has announced its decision to stop supporting the Chinese Yuan token CNH₮. The USDT operator attributed this development to a lack of market demand, among other points.
Use CNH₮ Redemption in One Year
In a recent blog post, Tether shared a strategic update on it CNH₮, refers to the management’s decision to withdraw the stablecoin product from its offering. This decision is based on many factors that focus on demand and efficiency.
A statement from the announcement reads as follows:
Community interest and discovery are at the heart of every product decision we make. When evaluating whether to maintain or launch the Tether token, we evaluate market demand, operational sustainability, and broader ecosystem conditions that influence long-term viability. Our priority is to allocate resources where they can effectively improve security, reliability, and innovation across the digital asset landscape.
Tether explains that CNH₮ recorded low interest, adoption, and public demand for their products, thus failing to generate acceptable returns on technical and operational efforts.
From this moment, all new issuance of CNH₮ is suspended. Currently, CNH₮ users will have the next year to process any redemptions before the stablecoin is permanently phased out. The stablecoin operator will issue another reminder before the redemption deadline. Following this development, Tether reiterates its commitment to global stablecoin growth and adoption.
The statement read as follows:
Tether will continue to focus its efforts on stablecoins and infrastructure that demonstrate strong, sustainable adoption and long-term viability. This includes improving core stablecoin liquidity, expanding the tokenization infrastructure, and supporting new financial tools that better serve the world’s users and builders.
Tether remains the operator of the world’s largest stablecoin, USDT, which currently boasts a market cap of $183.7 billion. In January, the stablecoin company launched USAT, designed specifically for American users.
Nigeria Leads Demand for Stablecoins
In other news, a recent study conducted by BVNK revealed that the leading economies in Africa are the ones leading the demand for stablecoins. This study, conducted in collaboration with Coinbase, YouGov, and Artemis, involved 4658 adults in 15 countries. The results revealed that 80% of Nigerian and South African respondents currently own a stablecoin, while 75% intend to increase their holdings as citizens seek shelter from their fragile local currency.
At the time of publication, the total stablecoin market has a value of 310 billion dollars, with the most expected market expansion in the future following the approval of the GENIUS Act last July.
Featured image from Flickr, chart from Tradingview
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