Tether Introduces Chinese Yuan-Backed Stablecoin

Tether has introduced its Chinese yuan-backed stablecoin, which it said will run over the ethereum blockchain as an ERC-20 token.

The stablecoin issuer said in a short blog entry Monday that the new token, known as CNH₮, is collateralized with yuan kept overseas.

“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),” according to the announcement.

It was previously reported in late August that Tether was hoping to add another stablecoin pegged to the yuan, otherwise called the renminbi.

Over-the-counter trader (OTC) Zhao Dong, an investor in Tether’s partner exchange Bitfinex, said at the time that he trusted that a stablecoin backed by offshore yuan could help the flow of the fiat money.

While Tether gave a smart contract address to CNH₮ Monday, it didn’t provide any further insights concerning the new stablecoin. It was not clear which exchanges would list the token. However, Dong said in August that his organization, RenrenBit, would offer support for it.

It also stays vague where Tether will store the yuan backing the stablecoin, although Dong revealed a month ago that the reserves would be put away in a bank in Belgium.