Controversial Stablecoin Tether Confirms New Banking Partner Deltec After Weeks of Rumors

All News All News Except Press Releases Crypto Imported

Stalwart USD-backed stablecoin Tether is now officially “fully backed” by USD, a new statement says.

The issuer of cryptographic stablecoin Tether (USDT) announced it had found a new banking partner in a statement Nov. 1, confirming rumors it would use Bahamas-based Deltec Bank & Trust.

Tether, which had suffered from mixed publicity after allegations it had parted ways with previous financial institution Noble Bank, also noted in the statement that its full money supply was backed by US dollars.

“USDT in the market are fully backed by US dollars that are safely deposited in our bank accounts,” the statement reads.

Despite the deal being de facto common knowledge for several weeks, Tether explained Deltec agreed to bank it “after their due diligence review of our company.” The statement continues:

“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 recovered from its recent volatility at press time, falling just short of its $1 peg today to trade around $0.998.

The amount of USDT circulating in markets was “significant[ly]” reduced recently, after additional rumors began circulating over cryptocurrency exchange Bitfinex’s solvency, the two companies sharing a CEO.

At the same time, the stablecoin industry has grown extremely rapidly in recent months, with a small swathe of competitor USD-backed coins gaining traction on major exchanges, including OKEx and Huobi, in October.

Source: , CoinTelegraph

Facebook Comments

Articles listed with Cash Tech News as the author are either general information, or may have been imported from another website, to bring our readers a rich media experience that encompasses articles that we find interesting, as well as those curated by others.

The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.

Corrections, feedback, and ideas should be submitted through the website contact form.