Tether is the largest stablecoin issuer and a subsidiary of the popular cryptocurrency exchange Bitfinex. The company is ranked first in the crypto sector due to its first-mover advantage. Although the company is at the top of the stablecoin race, it has been heavily criticized for failing to provide information about the reserved funds behind USDT.
Capital Union recently launched CNH stablecoin, which is fully backed by 1:1 Chinese Yuan currency. Capital Union is a boutique international financial institution based in the Bahamas. Tether will manage the funds behind the CNH stablecoin.
This newly launched Chinese Yuan pegged stablecoin aims to provide simple and fast China Yuan transactions to any location without relying on third-party centralized companies.
Although we all know that China is a crypto-hating country and that cryptocurrency use is strictly prohibited in Chinese jurisdiction, this stablecoin is fully compliant and free of regulatory restrictions. This stablecoin will continue to be available on the digital asset exchanges OKEx and Huobi.
The Tron blockchain network welcomed the first official launch of a third-party stablecoin with the introduction of CNH. While the Tron blockchain has its own stablecoin, USDD, CNH is a third-party stablecoin that was launched on the Tron blockchain directly.
Earlier this month, on December 2, former SEC official John Reed took to Twitter to criticize Tether for failing to disclose its reserved funds.
Reed claimed that Tether was operating a Ponzi scheme without informing the public.