Tether is reportedly planning a Chinese yuan-backed stablecoin to meet the growing demand for cryptocurrencies in the country.
Stablecoin operator Tether plans to issue a Chinese yuan-backed stablecoin, local industry media ChainNews reports on Aug. 21.
Tether to issue a renminbi-pegged stablecoin
Bitfinex shareholder Zhao Dong informed the outlet that Tether — the stablecoin operator behind leading stablecoin USDT — plans to issue a new stablecoin in the near future. The stablecoin in question would be backed by Chinese yuans held in offshore accounts under the CNHT ticker.
Dong also reportedly said that his digital asset management platform RenrenBit will be the first to invest in the project. Lastly, according to the outlet he also pointed out that Tether and cryptocurrency exchange Bitfinex are in a side-by-side relationship and that they have the same management team.
Tether has not replied to Cointelegraph’s request for an official confirmation at press time.
A controversial partnership
The relationship between Bitfinex and Tether roused suspicions after the NYAG filed a complaint against iFinex, Bitfinex and Tether in April. The NYAG alleged that the companies defrauded New York investors by covering up an $850 million loss on the Bitfinex trading platform.
As Cointelegraph reported earlier, Bitfinex and Tether have replied to Judge Joel Cohen’s recent ruling in the New York Attorney General (NYAG) ongoing case against companies, maintaining that the claims above are meritless.