Controversial stablecoin Tether (USDT) has revealed that it had identified a new banking partner, confirming speculations that it would utilize Bahamas-based Deltec Bank & Trust.
Tether, which had often received negative mixed publicity, recently became a center of discussion following rumors that it had ditched Noble Bank. However, Tether did not respond to the allegations but made a statement that its USDT tokens are fully backed by the US dollars.
Tether issued the following statement at that time:
“USDT in the market are fully backed by US dollars that are safely deposited in our bank accounts.”
The switch over became unofficially known to crypto enthusiasts several weeks before. In this regard, Tether has clarified that Deltec agreed to provide banking facility for the institution only “after their due diligence review of our company.”
Tether further stated:
“This included, notably, 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.”
Tether, a crypto pegged to the US dollar on a 1:1 ratio, fell to about 0.9400 in mid-october before rising back to $1.
Recently, Tether informed that it had redeemed considerable amount of USDT circulating in the market. Notably, Tether and BitFinex, a cryptocurrency exchange, shares the same CEO.
In the meanwhile, the stablecoin offerings have grown quickly the past few months. Notably, several prominent companies including IBM and Gemini have entered the fray either directly or indirectly. Another important matter is that firms are planning to introduce the euro, yen and Australian dollar pegged coins in the months ahead.
