Tether, the debatable issuer of the USDT cryptocurrency, might have found a new banking partner in the Bahamas.
Tether may Have a new Bank
As initial reported by The Block’s Larry Cermak, Tether — whose USD-pegged cryptocurrency has a market cap in the billions of dollars — is said to be holding its fiat reserves at Deltec Bank, that is based out of Nassau.
Those reserves, in keeping with the company, are quite giant. As of Tuesday morning, there are over 2.25 billion USDT tokens in circulation, representing $2.25 billion in physical assets. At one point, USDT was value nearly $2.9 billion, though hundreds of millions of dollars value of the cryptocurrency token has been yanked out of circulation in October.
Bitfinex Unveils ‘Distributed Banking Solution’
Tether reportedly shares a management team with cryptocurrency exchange giant Bitfinex, and, concurrent with Cermak’s report on the stablecoin issuer’s new banking partner, Bitfinex introduced a “new, improved and increasingly resilient fiat depositing system” that utilizes a “distributed banking solution.”
Previously, both Bitfinex and Tether were said to be holding assets at Noble Bank, a financial institution placed in Puerto rico. However, Noble Bank is currently reportedly up for sale as the result of financial struggles of its own.
Bitfinex did not reveal any details concerning its new banking partner(s). However, screenshots allegedly taken from within the new fiat deposit system suggest that the exchange doesn't need this information to become public.
“This banking information is being provided to you for purposes of contributing good faith funding to your account on Bitfinex,” reads the message in the screenshot posted by widely-followed cryptocurrency investor WhalePanda. “This banking info is commercially sensitive and confidential. You must be very careful with this information. You're asked to stay this data to yourself and to not share it except with your financial institution. Divulging this data may harm not just yourself and Bitfinex, but the whole digital token ecosystem. consequently, you're cautioned that there could also be serious negative effects related to this information changing into public.”
As CCN reported, the tether value has slipped below the $1.00 mark in recent days, perhaps in part due to lingering concerns over the long-run ability to redeem USDT for physical currency. After slipping as low as $0.92 on Mon, tether’s global average had recovered to about $0.98 by the time of writing.
A Tether representative did not instantly respond to CCN’s request for confirmation on its alleged banking relationship with Deltec.
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