Tether has pulled the plug on offshore Chinese yuan-backed stablecoin CNH₮, saying that new tokens will no longer be issued from them anymore.
In a press release on Saturday, Tether said, “We continuously evaluate our stablecoin offerings to ensure they align with real-world usage, long-term sustainability, and the needs of the communities that rely on them.”
The CNH₮ shutdown will happen in two stages. Stage one is already in effect. Minting is over. Stage two comes one year from now. At that point, redemption support for CNH₮ will end. Before that deadline hits, Tether said it will send out a reminder notice.
Until the final redemption date, holders can still redeem their CNH₮, as redemptions will continue under Tether’s existing Terms of Service, according to the press release, which also told users to redeem as soon as possible and not wait until the last minute.
Tether said the reason is simple. CNH₮ did not see enough steady demand. Usage stayed low compared to other tokens in the lineup. The company said the activity levels did not justify the cost and operational work needed to maintain the product at its internal standards.
Tether’s USDT supply falls below $184 billion
At the same time, the stablecoin market data from Artemis Analytics shows that USDT supply has fallen by about $1.5 billion so far in February. January already showed a smaller drop. If this pace continues, February could post the biggest monthly decline since December 2022, shortly after Sam Bankman-Fried’s FTX collapsed.
USDT supply peaked in early January just under $187 billion. By February 18, it had slipped below $184 billion. Even with that decline, the overall supply reached $304.6 billion in February, up from $302.9 billion at the end of the previous month.
USDC, issued by Circle Internet Group Inc., climbed to $75.7 billion. That is nearly a 5% increase this month. On transaction volume, stablecoins are still active. In 2025, total stablecoin transfers jumped 72% to $33 trillion. USDC handled $18.3 trillion of that volume. USDT processed $13.3 trillion.
In its Q4 2025 earnings report, Tether said, “The Reserves for Tether tokens in circulation amount to $181,223,149,214. The Liabilities of the Company amount to $174,445,364,503 of which $174,356,634,812 relates to digital tokens issued. The Value of the assets composing the Reserves as of 30 September 2025 exceeds the value of the liabilities of the Company by $6,777,784,711.”
