Tether Ends CNH₮ Stablecoin Amid Low Demand – Halts Issuance Now

• Tether discontinues issuance of CNH₮ tokens, with redemptions ceasing within a year.
• USDT's supply drops significantly in February, while USDC gains traction.

On February 21, 2026, Tether ceased issuance of its offshore Chinese yuan-backed stablecoin, CNH₮, citing insufficient demand and shifting market priorities. The decision marks the beginning of a gradual discontinuation process, with redemption support set to terminate within a year.

In a press release dated February 21, Tether confirmed that the strategic decision was driven by low usage of the token, which failed to justify ongoing operational costs. The withdrawal process involves two key stages: the immediate cessation of new token issuance and the longer-term closure of redemption options. Current CNH₮ token holders are advised to redeem their holdings as soon as possible to prepare for the full phase-out.

This announcement comes amid notable changes in the broader stablecoin market. In February, Tether’s flagship stablecoin, USDT, experienced a significant decline in its circulating supply, dropping by approximately $1.5 billion. This reduction marks the sharpest monthly contraction since the FTX collapse in December 2022. From its peak of nearly $187 billion in early January, USDT’s supply fell to just under $184 billion by February 18.

At the same time, Circle’s USDC stablecoin registered increased demand. Its circulating supply grew nearly 5% in February, reaching $75.7 billion, signaling a competitive edge in the market. Reports from 2025 illustrated that USDC had processed higher transaction volumes than USDT, further underscoring its growing presence as a market rival.

As of February 21, 2026, 16:08 UTC, Tether USDt (USDT) is trading at $1, reflecting a -0.035% change in 24-hour trading volume according to the latest CoinMarketCap data.