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

Read more about...

TetherNewsYuanCNHT
Disclaimer Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.