This article was originally posted on CoinStaker.
According to the Chinese media ChainNews, Tether has massive plans to issue a Chinese yuan-backed stablecoin.
Zhao Dong, a large shareholder at Bitfinex, revealed to ChainNews that the new stablecoin will be issued in the very near future.
The stablecoin operator behind USDT aims for its new stablecoin to be backed entirely by the Chinese yuan and be held in offshore accounts under the CNHT ticker.
The yuan-backed stablecoin will without a doubt be an interesting catch for many different investors. Zhao stated that his own digital asset management platform RenrenBit will have the honor of being the project’s first major investor.
The yuan-backed stablecoin already has investors lined up
Zhao mentioned that both Tether and Bitfinex are working in unison for the project to succeed. Both the crypto exchange and the stablecoin operator share the same management team.
Back in April the New York Attorney General’s office alleged that Bitfinex suffered losses of nearly $850 million. The exchange later allegedly received a large amount of funds from Tether which were used to cover the losses in secret.
According to the court order against Bitfinex, the funds did not belong to Bitfinex. A large percentage of the funds belonged to customers of the crypto exchange. The filings also suggested that Bitfinex never revealed anything to its investors.
On top of that, executives from both Tether and Bitfinex engaged in countless conflicting corporate transactions in which Bitfinex managed to access up to $900 million of the stablecoin operator’s cash reserves.
According to the filings, Bitfinex took at least $700 million and used all of them to cover the losses of its clients without revealing anything.
The relationship between the 2 companies raised a lot of suspicions, but it now appears that things are coming to light with the announcement of the yuan-backed stablecoin.
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