In line with a recent announcement published, the group behind the cryptographic stablecoin Tether [USDT] declared it had found a new banking partner, confirming rumors it might use Bahamas-based Deltec Bank & Trust. Tether [USDT] had suffered from mixed allegations that it had parted ways with previous financial institution Noble Bank, conjointly also noted within the statement that its full finances was backed by USD.
Explaining further, the statement further added:
“Tether [USDT] within the market are totally backed by United States greenbacks that are safely deposited in our bank accounts.”
Despite the deal being actual public knowledge for several weeks, Tether explained Deltec agreed to bank it “after their due diligence review of our company.” The statement continues:
“This enclosed, notably, an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, final beneficiaries and officers of our company; and assessments of our ability to take care of the USD-peg at any moment and our treasury management policies.”
The amount of Tether [USDT] current in markets was significantly reduced recently, when further rumors began surrounding over crypto exchange Bitfinex’s economic conditions, the 2 firms sharing a chief executive officer.
However at the same time, the stablecoin business has grownup very quickly in recent months, with a tiny low swathe of challenger USD-backed coins gaining traction on major exchanges, together with OKEx and Huobi, in October.