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Tether to Issue Stablecoin Backed by Yuan in Belgian Bank

Tether is planning to issue a stablecoin pegged to the Chinese renminbi, according to a trader with ties to the company.

Zhao Dong, an over-the-counter (OTC) trader in China and a shareholder of crypto exchange Bitfinex – which shares managers and owners with Tether – revealed the move on WeChat on Wednesday, saying Tether plans call the stablecoin CNHT.

His peer-to-peer crypto lending business, RenrenBit, will support trading and deposits for CNHT when it is launched, he said.

He added in a later post:

“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.”

The news of Tether’s plan for CNHT comes while Bitfinex and Tether are under investigation by the New York Attorney General (NYAG) for an alleged cover-up. According to the NYAG’s office, Bitfinex borrowed funds from Tether’s U.S. dollar reserve to fill a shortfall in funds after losing access to $850 million of its own funds held by a third-party payment processor.

On Monday, the New York Supreme Court denied Bitfinex’s and Tether’s claim that the NYAG lacks jurisdiction to conduct the investigation, saying the companies must cooperate with the agency. Bitfinex and Tether have appealed the decision.

 

Abram Kuznetsov
the authorAbram Kuznetsov
Abram Kuznetsov regularly contributes in-depth news articles for leading cryptocurrencies. He contributes technical price updates and analysis pieces on world's leading digital currencies & holds graduate degree in journalism.

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