Tether, the stablecoin issuer behind USDT (USDT), has reportedly added Britannia Bank & Trust, a private bank based mostly within the Bahamas to course of greenback transfers on its platform.
It is known Tether has instructed shoppers to ship cash to Britannia’s bank account over the previous couple of months, according to an Aug. 29 report by Bloomberg that cited folks acquainted with the matter.
However, it isn’t clear when Tether’s banking relationship with Britannia Bank began, however its different reported banking companions embrace Deltec Bank and Capital Union Bank.
In latest months, United States-based cryptocurrency companies have needed to more and more look offshore for banking companions amid elevated scrutiny by U.S. regulators following the shock collapse of FTX in November.
Tether’s unwillingness to publicly disclose the total extent of its stability sheet and banking relationships has additionally fueled trade FUD (an acronym for worry, uncertainty and doubt) previously over how the stablecoin issuer shops its $86 billion in belongings.
Related: US Fed steps up oversight of banks’ involvement with crypto firms
Tether’s USDT at present dominates the stablecoin market, with its $82.9 billion market cap representing 66.5% of the full market, according to CoinGecko.
USDT’s market cap rallied over 20% to $80 billion over the primary 4 months of 2023 — amid the banking disaster involving Silvergate Bank, Signature Bank and Silicon Valley Bank — however has since steadied out across the $80-82 billion since then.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
