Tether Launches Chinese Yuan-Pegged Stablecoin on the Ethereum Blockchain
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Tether has launched its Chinese yuan-backed stablecoin, which it revealed will run on top of the ethereum blockchain as an ERC-20 token.
The stablecoin issuer said in a brief blog post Monday that the new token, known as CNH₮, is collateralized with yuan stored offshore.
“CNH represents a further expansion of Tether’s capabilities in facilitating the digital use of traditional currencies, such as US dollar (USDT) and euro (EURT),” the announcement said.
CoinDesk first reported in late August that Tether was looking to add a new stablecoin pegged to the yuan, also known as the renminbi.
At the time, over-the-counter trader (OTC) Zhao Dong, a shareholder in Tether’s affiliate exchange Bitfinex, said he believed that a stablecoin backed by offshore yuan could boost the circulation of the fiat currency.
While Tether provided a smart contract address for CNH₮ Monday, it did not provide any further details about the new stablecoin. It was not immediately clear which exchanges would list the token, though Dong said in August that his company, RenrenBit, would provide support for it.
It also remains unclear where Tether will store the yuan backing the stablecoin, though Dong told CoinDesk last month that the reserves will be stored in a bank in Belgium.
CoinDesk has reached out to Tether for further comment and will update if we hear back.
Yuan image via Shutterstock
