he firm that issues USDT, Tether Holdings, has unveiled plans to pilot an offshore Chinese yuan stablecoin known as the CNHT. Tether’s digital dollar presence within the crypto industry has been extensive in the past recent months. Additionally, a significant uptake in demand has been witnessed in China.
One of BitFenix shareholders, Zhao Dong, has made it clear in a recent interview that Tether is also on the verge of launching stablecoins that will be backed by bulk commodities including gold, rubber and even crude oil. The shareholder Zhao Dong has revealed that the planned launch of the cryptocurrency will be supported by the Chinese Renminbi.
Over the few past years, Tether has managed to capture a market capitalization estimated to be over USD 4 billion with the figures running to date. The project was initially launched in its beta version in November of 2014 whereby the company announced that the flagship Tether tokens would cumulatively represent the following currencies UStether, Eurotether and the YenTether.
Tether’s significant predominance can be exemplified in this week crypto market. Whereas a number of top cryptocurrencies registered drops below their 200-day averages Tether accounts managed to stay afloat. The accounts, today, account for an estimated 75% of all cumulative BTC trades, 49-percent of ETH trades, 40% of XRP trades and 57% of all BCH trades.
In July 2019, Anna Baydakova, a cryptocurrency reporter made a discussion concerning the demand for Tether among Chinese importers in Russia. As per the reporter, there existed a growing number of importers who were allegedly purchasing USD 30 million of Tether tokens a day. She continued to posit that, between the Russian and Chinese borders Tether USDT was a significant player.
“According to several Moscow OTC Traders, it has at least one real-world use case-as the go-to remittance service for local Chinese importers”.
These sentiments were made by Baydakova, who wrote towards the end of July concerning the Tether USDT.
An announcement on Tether’s website continues to explain that “following the widespread success of our bitcoin-based USD tether issued via the Omni layer protocol, we have launched and issued both US dollars and Euros as Ethereum-based Tether, compatible with the ERC20 standard.”
Being the sixth largest crypto market in terms of capitalization, Tether Holdings’ move to launch, issue and pilot a digital Yuan and commodity coin will serve as a significant move in preparing it towards becoming a global giant in the crypto industry and markets. It is also strategic in increasing Tethers Holdings’ global footprint. The backing by Renminbi and gold will see the digital Yuan have even more potential in the crypto industry, making it more lucrative to buyers and investors.