The issuer of cryptographic stablecoin Tether declared it had discovered a new banking partner, putting truth to rumors it would use Bahamas-based Deltec Bank & Trust.
This was made known in a statement that the firm released just recently.
Tether, which had gone through mixed publicity after accusations it had parted ways with erstwhile financial institution Noble Bank, also stressed in the statement that its full money supply was supported by US dollars.
“USDT in the market are fully backed by US dollars that are safely deposited in our bank accounts,” the statement said.
Despite the deal being de facto common knowledge for a number of weeks already, Tether verified that Deltec agreed to bank it “after their due diligence review of our company.”
The statement went on to state:
“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.”
USDT has broadly bounced back from its recent volatility, falling just short of its $1 peg today to exchange at around $0.998.
The amount of USDT circulating in markets was “significant[ly]” diminished of late, after rumors involving cryptocurrency exchange Bitfinex’s solvency, the two companies sharing a CEO.
Additionally, the stablecoin industry has gotten extremely rapidly in the past few months, with a small group of competitor USD-backed coins getting more and more traction on foremost exchanges, including OKEx and Huobi, last month.
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