Tether Halts CNH₮ Stablecoin Amid Demand Slump

- Tether discontinues offshore yuan-backed CNH₮ stablecoin due to low adoption. - USDT sees a $1.5 billion supply drop in February, its steepest decline since late 2022. On February 21, 2026, Tether announced it has ceased issuing its offshore Chinese yuan-backed stablecoin, CNH₮. The company has stopped new token issuances immediately and will end redemption support within a year. Tether cited persistently low demand and disproportionate operational resources as its reasons for the decision. This move aligns with its broader strategy to focus on products with stronger market demand and long-term sustainability. On February 21, CoinDesk reported that the circulating supply of Tether’s primary stablecoin, USDT, dropped by $1.5 billion during February. This decline is the largest monthly drop since the FTX collapse in late 2022. Market data shows USDT’s supply peaked at $187 billion in January before falling below $184 billion by February 18. The contraction stems from multiple factors, including new European regulations. The Markets in Crypto-Assets (MiCA) framework prompted some exchanges in Europe to delist or limit access to USDT for regional customers. Broader market de-risking and a shift in liquidity toward competitor stablecoins may have also contributed to the decline. Meanwhile, rival stablecoins are gaining traction. On February 15, Binance News noted that the total stablecoin market capitalization is approaching historical highs, with USD Coin (USDC) showing notable growth. Benzinga later reported on February 20 that USDC’s market cap increased by nearly 5% to $75.7 billion. This trend reflects evolving market preferences and expanding use cases. For instance, B2B payments using stablecoins have surged over the past year. According to CoinMarketCap data at 16:08 UTC on February 21, Tether USDt (USDT) is trading at $1. Its 24-hour trading volume is down by 23.313%, and the token also recorded a marginal 0.035% price decrease in the last 24 hours, reflecting ongoing adjustments in market activity.