Tether Launches Its Chinese Yuan-backed Stablecoin on Tron

UTC by Mercy Tukiya Mutanya · 2 min read
Tether Launches Its Chinese Yuan-backed Stablecoin on Tron
Photo: Depositphotos

According to Tether, this launch is well in line with its mission of “pioneering stablecoin technology and bringing the largest and most liquid stablecoins to global markets everywhere.”

Tether Operations Limited has announced the launch of its offshore Chinese yuan-backed stablecoin on the Tron blockchain. The stablecoin, CNHT, was created in 2019 and was previously only available on the Ethereum blockchain as an ERC-20 token. As of the December 6 announcement, Tron becomes the second blockchain on which CNHT can be received, traded and held.

“We’re excited to bring CNHT to the Tron ecosystem,” said Paolo Ardoino, CTO of Tether. “At a time when the crypto market is experiencing immense turmoil, we believe that the best way forward is to keep building. Things are business as usual at Tether and we hope our continued growth and expansion will inspire others to keep going as well.”

The blockchain financial services provider adds to its range of stablecoins which comprises stablecoins backed by the Euro (EUR₮) and the Peso (MXN₮) and the United States dollar (USDT). USDT is the most widely used stablecoin with a market capitalization of over $65 billion. The CNHT stablecoin will serve as a digital representation of Tether’s Chinese yuan reserve to which it is pegged on a 1:1 ratio. The reserve is managed by the international financial firm Capital Union which is also responsible for custody and auditing. Bitfinex crypto exchange is the first exchange to allow CNH₮ deposits and withdrawals for its clients, made possible by the platform’s Tron blockchain transport layer.

According to Tether, CNHT is vital for safe and cost-effective Chinese yuan transactions. It also provides makes transactions between currencies more efficient and cost-effective while improving liquidity. The stablecoin remedies the issue of large transaction fees when sending Chinese yuan across borders as it can be sent almost instantly and without intermediaries. CNHT is fully compliant with Chinese regulations and is currently available on several exchanges, including Bitfinex, OKEx and Huobi.

According to Tether, this launch is well in line with its mission of “pioneering stablecoin technology and bringing the largest and most liquid stablecoins to global markets everywhere.” Major crypto exchange Huobi is set to list EURT (Euro Tether), XAUT (Tether Gold) on December 8, 2022. Deposits for both opened on Dec. 6 at 03:00 UTC. Spot trading for the EURT/USDT, EURT/USDD, XAUT/USDT, XAUT/USDD trading pairs will open “when the deposit volume meets the demand of market trading, which will be officially announced in advance,” according to a Huobi announcement. EURT, XAUT withdrawals are set to open at 14:00 UTC on Dec. 9.

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Mercy Tukiya Mutanya

Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student. She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.

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