Tether, a leading provider of blockchain-based financial services, has launched an offshore Chinese Yuan-backed stablecoin.
The new stablecoin, CNH₮, combines two of the world’s largest economies and makes it easier for users to transact with the Chinese Yuan (CNH) in a secure, digital form.
With the launch of CNH₮, Tether continues to expand its suite of digital stablecoins comprised of the USDT, the EURT and the MXNT; all of which are aimed at enabling the global economy to move value quickly, securely, and cost-effectively.
CNH₮ is designed to be a digital representation of the Chinese Yuan, and it is backed 1:1 by the currency held in reserve. This reserve is managed by Tether’s partner, Capital Union, a leading international boutique financial institution based in the Bahamas. Capital Union is also responsible for the custody and auditing of the reserve.
The company said one of the key advantages of CNH₮ is that it enables cost-effective and secure transacting in the Chinese Yuan and eliminates the need to pay large transaction fees when sending CNY across borders, as CNH₮ can be sent almost instantaneously and without the need for middlemen.
In addition, CNH₮ is fully compliant with Chinese regulations and is available on several exchanges, including OKEx and Huobi.
It is the first stablecoin to be launched on the Tron blockchain and is intended to provide a more efficient and cost-effective way for people to transact between different currencies.
The launch of this new stablecoin is expected to improve liquidity and reduce the cost of transactions for those who use it. It will also make it easier for users to access the Chinese Yuan and other international currencies.
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