A Tether new banking relationship has been announced today by the same company on their web page, with a new banking institution. The bank is a Bahamas based financial institution called Deltec Bank & Trust Limited, an institution that according to the announcement, has more than 72 years of experience in banking. This comes to clear up the banking situation of the stablecoin startup.
Tether New Banking Relationship
Tether Limited, the company that is the issuer of the most used and extended stablecoin in the market, USDT, has not been always so transparent about their internal processes. However, this time, it published an announcement on its webpage to let customers know that they had established a new banking relationship with Deltec, a Bahamas bank with ample tradition, based in Nassau.
Deltec seems to be a conservative bank, with no debts in its wallet. It is privately owned, offers a wide variety of services and now enjoys part of the Tether balance on its sheet. The announcement declares that Deltec accepted Tether as a customer just after checking their legitimacy as a business. They stated that the inquiry included:
“…an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies”
They also added that to open this Tether new banking relationship, Deltec will be able to review their company on an ongoing basis.
This announcement was also accompanied by a letter of Deltec certifying that they had an amount bigger than $1.8 billion dollars in their portfolio within the bank. This was made to reinforce the authenticity of the relationship.
But everything has not been rosy for the people at Tether limited. Last month USDT, their cryptocurrency lost its peg with the dollar, supposedly due to an announcement that showed the intention of Binance, one of the biggest exchanges in the world, of delisting USDT due to their lack of transparency, a thing that was fake news but affected trading.
It later was discovered by an insider that all was an organized operation with trading bots flooding exchanges with sell orders. This was directed to take down Tether and Bitfinex, an exchange that holds the highest amount of Tether. This affected the whole market, with bitcoin skyrocketing in exchanges that had listed USDT.
Also, the last bank that Tether was related to, Noble Bank, was in dire straits seeking for investors after it lost tether as a customer.