Tether Abandons Yuan-Backed Stablecoin Amid China's Crypto Ban

Tether, the world's largest stablecoin issuer, has announced the discontinuation of its yuan-backed CNH₮ stablecoin due to low demand and interest. The company cited a recalibration of its products in relation to its goals, aiming to ensure offerings align with real-world use, long-term sustainability, and community demand.

The decision follows China's reiteration of its ban on crypto trading, mining, and related businesses earlier this month. Tether emphasized that the change will take effect immediately, ceasing all issuances and minting of the stablecoin.

Holders of the yuan stablecoin have one year to process their redemption, with Tether posting online reminders before the deadline. The company will focus on its existing stablecoins and infrastructure with strong, organic adoption and long-term relevance.