Tether Launches Stablecoin Backed by Offshore Chinese Yuan

Reported in late August, Tether had made plans to add a new stablecoin pegged to the Chinese Yuan, named “CNHT.” The idea came from the intention of Zhao Dong, one of the shareholders of the Bitfinex crypto exchange.   

Tether mentioned in a blog post that the new stablecoin running on top of the Ethereum blockchain as an ERC-20 token would be collateralized with yuan stored offshore. Dong believed that a stablecoin backed by offshore yuan could help boost the circulation of the fiat currency.  

A smart contract address was providedfor CNHT on Monday, although other details were not disclosed regarding the new stablecoin. Dong’s digital banking business, RenrenBit has been reported to be supporting CNHT’s trading and deposit services later on.   

Tether’s other stablecoins are backed by US dollars (USDT) and the Euro (EURT). Offshore yuan will be joining Tether, as offshore yuan is free from monetary policies outlined in Beijing, unlike the onshore yuan.