Tether has announced it will discontinue support for its offshore yuan-pegged stablecoin, CNH₮. On February 21, 2026, the company confirmed it had stopped minting new CNH₮ tokens with immediate effect. No additional supply will enter circulation from this point forward.
The decision follows an internal review of product performance and broader market dynamics. Tether determined that CNH₮ no longer meets the threshold for continued operational backing. The token’s scale and usage levels have declined relative to other offerings within the company’s portfolio.
Despite halting issuance, Tether confirmed that CNH₮ will remain redeemable for a limited period. This step aims to provide an orderly wind-down process for holders across supported blockchains.
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Tether outlined a two-phase transition plan. The first phase begins immediately with the cessation of new token creation. The second phase will take effect one year after the public announcement, when redemption services for CNH₮ will formally end.
Before the final cutoff, Tether will send a reminder to users. Until then, CNH₮ users can redeem under the current Terms of Service. Until the cutoff deadline is reached, users can redeem under the current Terms of Service. The company advises customers to redeem before the wind-down period nears its end.
Tether explains that real-world demand from their community of users drives their product roadmap. The company regularly evaluates every stablecoin to determine whether it actually fits the bill for real-world use and can withstand the test of time. The assessment also finds that the CNH₮ no longer demonstrates sufficient organic growth.
Operational sustainability was one of the key considerations in the decision. The fact that standards for compliance, security, and infrastructure must remain consistent requires dedicated resources. Tether determined that these resources are more effectively allocated to assets and infrastructure projects with higher demand.
Moving forward, the company will concentrate on securing basic stablecoin liquidity and further developing tokenization services. It also aims to support financial services with a wider global reach.
CNH₮ token holders are encouraged to redeem their tokens well before the final deadline. After the one-year deadline, redemption support will be completely stopped.
The news marks a new direction for Tether’s focus on having more liquidity and infrastructure for stablecoins with higher demand.
This is a sign of the weakening demand for offshore yuan stablecoins in the new market conditions for digital assets.
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