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 USDT — plans to issue a new stablecoin in the near future. It would be backed by Chinese yuan held in offshore accounts under the CNHT ticker.
Zhao also reportedly said that his digital asset management platform RenrenBit would be the first to invest in the project. 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 the time of publication.
A controversial partnership
The relationship between Bitfinex and Tether roused suspicions after the New York Attorney General’s office filed a complaint against iFinex, Bitfinex and Tether in April. Prosecutors 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 ongoing case, maintaining that the allegations are meritless.