Tether, the company behind the popular USDT stablecoin, is reportedly planning to issue another stablecoin backed by the Chinese Yuan, according to an insider with ties to the organization.
New Stablecoin From Tether
On Aug. 22, OTC trader and Bitfinex shareholder Zhao Dong said on WeChat that Tether is looking to launch another stablecoin backed by the Yuan, with offshore reserves held in Belgium. Bitfinex has shared ownership and management with Tether, giving more credence to the claim.
Dong says that the new coin will be called CNHT.
Personally, I think the offshore yuan stablecoin could boost the circulation of offshore renminbi and internationalize it. Regulators may be happy to see it proceed and succeed.
Speaking with CoinDesk, Zhao said that he believes the stablecoin will launch “very soon, possibly within weeks.” While Tether has previously come under fire for the uncertainty surrounding its reserves of USDT, which is supposed to be 1:1 with the US dollar, Zhao claims that the company will hold its reserves in a Belgian bank.
Zhao anticipates that introducing a yuan-backed coin will reduce the company’s dependence on the U.S. dollar and also increase the circulation of renminbi held offshore.
Tether has yet to comment on the situation, or provide clarity over which blockchain the new coin will be built on top of. USDT launched on bitcoin’s network originally, but the company has since issued coins using ethereum and tron.