|Nov 02, 2018 12:14 AM||By: Ben Noble | 3940 Views|
Tether Limited, the issuer of uncertain USD-pegged cryptocurrency stablecoin tether (USDT), has established that it has formed a banking relationship with a little financial institution based out of the Bahamas.
The cryptocurrency firm, famous for its opaque operations, broke from standard work on Thursday, announcing openly that it has formed a banking partnership with Deltec Bank, a 72-year-old financial institution established in Nassau.
We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited https://t.co/LSn64soUsC . Balance confirmation at 2018-10-31 attached.— Tether (@Tether_to) November 1, 2018
Writing in the announcement, Tether announced that Deltec had only opened the account after several month reviews that covered evaluating whether the company could sustain the USDT token’s $1.00 peg. That, peg, as reported, has floundered in recent weeks, even as Tether has recovered more than $1 billion value of the token at full face value since the opening of October.
“The acceptance of Tether Limited as a client of Deltec came after their due diligence review of our company. 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 estimates of our ability to maintain the USD-peg at any moment and our treasury management policies. This process of proper diligence was conducted throughout several months and collected positive results, which led to the possibility of our bank account with this institution. Deltec reviews our business on an ongoing basis.”
Tether additional published a letter from Deltec proving that the firm — accused by some of operating a fractional reserve — is continuing $1.83 billion at the bank, more than to cover the assets backing the 1.78 billion in outstanding USDT.
The letter, which was attached to Deltec Bank & Trust Limited, emphasized that this confirmation was made “without obligation” to the bank:
Before this public confirmation, Tether’s relationship with Deltec had first been published by The Block. Earlier, the firm was supposed to be banking at Puerto Rico-based Noble Bank, which is now reportedly up for sale following the departure of Tether and other great crypto industry clients.
In June, Tether wrote a story from US legal firm Freeh, Sporkin & Sullivan LLP that vetted the firm’s bank accounts, determining that they contained enough funds to cover the outstanding USDT as of June 1, the date on which the review was carried.