Tether Limited, the company that issues the dollar-pegged cryptocurrency Tether (USDT), has a new banking relationship with. announced Deltec Bank and Trust Limited, based in the Commonwealth of the Bahamas. The 72-year-old financial institution accepted Tether Limited as a client after completing the required due diligence on the company.
Tether further stated that Deltec had analyzed all compliance processes, guidelines and procedures. Tether’s announcement added:
The acceptance of Tether Limited as a customer of Deltec took place after their due diligence examination of our company. In particular, this included an analysis of our compliance processes, guidelines and procedures; a full background check of our company’s shareholders, final beneficiaries and officers; and assessments of our ability to maintain the USD peg at all times and our treasury management guidelines.
This due diligence process was carried out over a period of several months and produced positive results that led to the opening of our bank account with this institution. Deltec continuously monitors our company.
Tether registered in the USA
The announcement reiterated that Tether Limited is registered with the US Treasury Department’s Financial Crimes Enforcement Network.
Confirmation of bank balance
Tether-Limit has also submitted a letter from Deltec Bank and Trust Limited stating that the present value of Tether’s account was $ 1,831,322,828. Comparing this number with the circulating offer reported on coinmarketcap.com ($ 1,776,421,736) we can conclude that tether (USDT) is actually backed by actual US dollars.
A screenshot of the letter from Deltec Bank and Trust Limited can be found below.
Tether Limited’s announcement to open a new account with Deltec Bank and Trust most likely quelled rumors that the company was on the verge of collapse after its former banking partner – Noble Bank – was reported insolvent. The rumors had also affected Bitfinex, which has been linked to Tether on numerous occasions.
With the confirmation of the Deltec Bank of Tether balance, traders and investors can relax a bit after losing the value of USDT by 4% when other rumors surfaced in mid-October that Binance was delisting the stablecoin. The origin of the delisting rumor was the news that Noble Bank was on the verge of collapse and would do so with Tether’s funds.
What do you think of the new banking relationship between Tether Limited and Deltec Bank and Trust? Please let us know in the comments section below.
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