Based on a recent report, it appears that the controversial USDT cryptocurrency issuer Tether may have found a new banking partner in the Bahamas. It was earlier reported that the Block’s Larry Cermak, Tether will be having its first fiat reserves at Deltec Bank, which is based out of Nassau. As at yesterday, those reserves were quite large already as it runs to about 2.25 billion USDT tokens in circulation. In physical asset; that is worth $2.25 billion; despite the fact that hundreds of millions dollars’ worth of virtual currency token was removed out of circulation in October.
Bitfinex’s ‘Distributed Banking Solution’
Reportedly, Tether shares a management team with Bitfinex, the cryptocurrency exchange giant which according to Cermak’s report on the stablecoin issuer’s new banking partner, has unveiled a “new, improved and increasingly resilient fiat depositing system” that utilizes a “distributed banking solution.”
The former banking partner Noble Bank, which was holding asset for Bitfinex and Tether has been reportedly put up for sale owing to internal financial struggle; little surprise there are speculations that the institutions have parted ways with the Puerto Rico-based bank.
No Official Release Yet
As it stands, Bitfinex has not released any official report to public domain indicating that it now has a new banking partner. However, some screenshots purported to be taken from within the new fiat deposit system have surfaced, though these screenshots indicate that the firm might intentionally want to keep this information private and not for public consumption. The message in the screenshot posted by WhalePanda, widely-followed crypto investor, reads;
“This banking information is being provided to you for purposes of contributing good faith funding to your account on Bitfinex,”
The screenshot further reads;
“This banking information is commercially sensitive and confidential. You should be very careful with this information. You are asked to keep this information to yourself and to not share it except with your financial institution. Divulging this information could damage not just yourself and Bitfinex, but the entire digital token ecosystem. Accordingly, you are cautioned that there may be serious negative effects associated with this information becoming public.”
As previously reported that the price of Tether had gone below $1.00; there is a strong likelihood that this is partially due to hovering concerns over the long-term ability of USDT as fiat currency. As at press time, it has recovered to about $0.97 despite dropping to as low as $0.94 a few days ago.
It is considered important to note that Tether has not put up official release confirming the speculation that they now have a new banking partnership agreement with the Bahamas-based bank even though there are indications that this might be true.