Tether CNHT discontinuation: issuance halted, redemption support winding down
Tether is discontinuing support for its offshore yuan stablecoin CNH₮, with new token issuance halted effective immediately, as reported by Foresight News (https://www.bitget.com/news/detail/12560605211441). The move initiates a wind-down of redemption support.
According to that report, redemption support will cease one year after the announcement, providing a limited window for holders to exit. The company cited low interest and limited sustained community demand as the rationale.
Why it matters: offshore yuan stablecoin and user impact
The change affects users who relied on CNH exposure via CNH₮ for transfers or balances. CNH denotes offshore renminbi.
Based on the issuer’s published notice reviewed for this report, the decision is framed as a strategic product focus aligned with community demand. The timeline also clarifies the operational path for redemptions during the wind-down.
“We will immediately stop issuing new CNH₮ tokens,” said Tether in its announcement (https://tether.io/news/tether-updates-users-on-a-strategic-transition-for-cnht-to-better-support-community-driven-product-focus/), “and redemption support will be discontinued one year after the announcement.”
Liquidity and listing policies may tighten as issuance stops, which can increase spreads and settlement delays. Timing redemptions within the stated window may reduce operational and market frictions.
CNH₮ next steps: redemption deadline, options, and risks
Holders face a clear timeline and must select an exit route compatible with their venue and jurisdiction. Any steps should be completed before support ends to avoid post-deadline constraints.
Redeem or convert CNH₮ before the redemption deadline
Redemption with the issuer is available for one year from the announcement date, per the notice summarized above. Users can also check whether their exchange or wallet still supports conversions during the wind-down.
Processing times, fees, and limits may vary by platform and compliance requirements. Maintaining records of transfers and confirmations can help reconcile balances during the transition.
Evaluate alternatives and risks of holding after support ends
Continuing to hold after support ends can entail reduced liquidity, potential delistings, and pricing dislocations. Secondary-market exits may become sporadic or costly once official redemption ceases.
If conversion is pursued, selection should reflect custody, compliance, and settlement needs supported by the holder’s platform. Absent issuer support, reliance on third-party liquidity introduces additional counterparty and execution risks.
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