Tether, the world’s largest stablecoin provider, will add the offshore yuan-pegged stablecoin CNHT to Tron, the blockchain network founded by Justin Sun.
Paolo Ardoino, Tether’s chief technology officer, said that “at a time when the crypto market is experiencing immense turmoil, we believe that the best way forward is to keep building,” and gave assurance that “things are business as usual at Tether” amid crypto market turmoil.
“CNHT on #TRON. Big milestone for crypto and Asia community,” said Justin Sun on Twitter.
According to Tether, Tron is the second blockchain after Ethereum that is eligible to trade CNHT. CNHT is currently unavailable on the CoinMarketCap’s price charts.
Ethereum explorer data seen by Forkast show that total addresses and supply are significantly lower compared to USDC.
The Chinese central bank, the People’s Bank of China keeps a tight rein on the yuan under the managed floating exchange rate mechanism that Beijing has used since 2005.
In May 2021, Zhou Chengjun, director of the People’s Bank of China’s Finance Research Institute, said Beijing had to allow the yuan to float freely if it wants it to be a truly international currency like the US dollar or the euro. A deputy governor in China’s central bank had to refute speculations of changing the exchange rate mechanism.
Zhang Ping, a researcher at the Chinese Academy of Engineering, in September suggested that China issue a digital yuan-backed stablecoin to build an on-chain payment system for China’s Metaverse. This is in line with China’s development of its own technology and infrastructure to safeguard national security.
See related article: Hong Kong, BIS explore CBDC-backed stablecoins in retail prototype
Tether announced Monday that its two other stablecoins, Tether Gold (XAUT) and European Tether (EURT), were listed on crypto exchange Huobi Global on Nov 8.
Sun has a 60% stake in Huobi Global, according to Bloomberg. The exchange was sold to About Capital, a Hong Kong-based asset management company, in October. Sun is also a member of the Huobi Global’s Advisory Board.
See related article: Dominica releases ‘world’s first national’ crypto token with Huobi, Tron