Tether’s Strategic Pivot: Phasing Out Chinese Yuan CNH₮ Stablecoins in Two-Stage Wind-Down
Tether slashes yuan exposure—announces phased termination of CNH₮ stablecoin operations.
The Unwinding Begins
Tether initiates its two-stage discontinuation process for Chinese yuan-pegged stablecoins. The move signals a strategic retreat from direct yuan exposure—a calculated shift in the stablecoin giant's global reserve strategy.
Market Mechanics in Motion
The phased approach allows for orderly redemption windows. Existing CNH₮ holders face defined timelines to convert positions—creating predictable liquidity events rather than sudden market shocks.
Geopolitical Calculus
This isn't just portfolio management. Tether's retreat mirrors broader regulatory friction between decentralized finance and China's controlled digital currency ambitions—because nothing says 'global finance' like navigating capital controls with cryptographic workarounds.
The Stablecoin Rebalancing Act
Tether consolidates toward dollar dominance while trimming regional exposures. The move highlights how even 'stable' assets dance to geopolitical tunes—proving once again that in crypto, the only constant is watching traditional finance institutions play catch-up with the inevitable.
Tether’s USDT supply falls below $184 billion
At the same time, the stablecoin market data from Artemis Analytics shows that USDT supply has fallen by about $1.5 billion so far in February. January already showed a smaller drop. If this pace continues, February could post the biggest monthly decline since December 2022, shortly after Sam Bankman-Fried’s FTX collapsed.
USDT supply peaked in early January just under $187 billion. By February 18, it had slipped below $184 billion. Even with that decline, the overall supply reached $304.6 billion in February, up from $302.9 billion at the end of the previous month.
USDC, issued by Circle Internet Group Inc., climbed to $75.7 billion. That is nearly a 5% increase this month. On transaction volume, stablecoins are still active. In 2025, total stablecoin transfers jumped 72% to $33 trillion. USDC handled $18.3 trillion of that volume. USDT processed $13.3 trillion.
In its Q4 2025 earnings report, Tether said, “The Reserves for Tether tokens in circulation amount to $181,223,149,214. The Liabilities of the Company amount to $174,445,364,503 of which $174,356,634,812 relates to digital tokens issued. The Value of the assets composing the Reserves as of 30 September 2025 exceeds the value of the liabilities of the Company by $6,777,784,711.”
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