Tether releases stablecoin based on offshore Chinese yuan

The asset is the fourth stablecoin issued by the company

07.12.2022 - 07:00

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2 min

What’s new? Tether, the issuer of the USDT stablecoin, has announced the launch of an offshore Chinese yuan on the TRON blockchain. The first crypto exchange to support the asset with the ticker CNHT will be Bitfinex, which, like Tether, is a subsidiary of iFinex. This is reported on the official blog of Tether.

Announcement on the company’s blog

What is known about Tether? It is the largest stablecoin issuer in the cryptocurrency market. The centralized stablecoin USDT, which is pegged to the US dollar, ranks third in the overall cryptocurrency ranking with a capitalization of $65,6 billion, according to aggregator CoinGecko as of December 7.

What else is known about CNHT? The token was issued in 2019 on the Ethereum network based on the ERC-20 standard, and it is pegged to the offshore Chinese yuan at a 1:1 ratio. CNHT is one of four stablecoins supported by Tether, including the digital dollar USDT, the digital euro EURT, and the digital peso MXNT.

The offshore yuan is controlled by the Hong Kong Monetary Authority (HKMA), not the People’s Bank of China, and the currency’s exchange rate is determined based on trading volumes in overseas markets.

“At a time when the crypto market is experiencing immense turmoil, we believe that the best way forward is to keep building,” said Tether and Bitfinex CTO Paolo Ardoino. The launch of offshore Chinese yuan on TRON reflects the company’s desire to pioneer stablecoin technology and bring the largest and most liquid stablecoins to global markets.

Tether completely removed its commercial paper from its reserves in October, replacing it with US Treasury bills. This came after months of gradually reducing the volume of commercial debt holdings for its reserve assets.

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