After Tether Limited weathered the storm of controversy surrounding its ties with Puerto Rico-based Noble Bank, Tether Limited confirmed Deltec Bank & Trust as a new banking partner rolled into one opinion On november 1st. The dollar-pegged stablecoin (USDT) issuer has silenced rumors after announcing the Bahamas-based banking provider and fiduciary service as the financial institution where its funds are now resident. The statement summarized that all tethers in circulation are fully covered by US dollars.
According to their website, Deltec Bank & Trust Limited was founded in 1959 in Nassau, Bahamas. She specializes in providing private banking, wealth and fiduciary services, family office services, investment management and others. The company operates as a subsidiary of Atlas Capital Group Holdings.
“USDT on the market are fully covered by US dollars that are securely deposited in our bank accounts,” he said Statement reads.
Although the speculation has been widespread in the past few weeks, Tether has clarified Deltec’s decision to accept it “after a due diligence on our company.” That opinion spread further:
“This particularly 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. “
Declaration cleans up with permission in the US
Hong Kong-based Tether Limited is registered with the Treasury Department’s Financial Crimes Enforcement Network and subscribes to the highest standards of anti-money laundering (AML) and anti-terrorist financing (CFT) procedures.
Present value revealed
Aware of skepticism about the existence of the US dollars backing the circulating Tether, Tether Limited dispelled concerns by issuing a letter from Deltec Bank and Trust Limited claiming a total of $ 1,831,322,828 as the present value of Tethers Account was specified.
While the circulating supply of Tether reported on coinmarketcap.com is $ 1,776,421,736. The excess of funds underscores the company’s stance that all USDT in circulation are covered by US dollars.
Controversy with Noble Bank
Tether and its cryptocurrency exchange Bitfinex considered other options for banking support after Noble Bank began looking for a buyer after the long bear market in cryptocurrencies in 2018. Surging amid fluctuating revenue, the bank decided to “sell at between $ 5 million and $ 10 million, based primarily on the value of its Puerto Rican license to operate as an international finance company.”
Speculation about the imminent collapse of Tether and Bitfinex will certainly come to an end with the latest statement in the meantime.
Exam not yet completed?
Deltec Bank & Trust Limited has sent Tether Limited a letter confirming the present value of the portfolio of its account based on the information currently in its possession.
Eyebrows rose after the letter from “Deltec Bank & Trust Limited” was signed with something more like a scrawl. The lack of a signature from the undertaker means that the inventory report was made without liability.
It is worth remembering that Tether’s transparency update underwent an intensive review in June, which resulted in the company enlisting the services of Freeh, Sporklin & Sullivan LLP (FSS) to assess bank documents and conduct a random inspection of the circulating tethers and the corresponding reserves of US dollars. Tether was not privy to the balance sheet confirmation dates chosen according to the FSS report.
The company further confirmed that “Tether’s unencumbered assets exceed the balance of fully hedged USD Tethers in circulation as of June 1, 2018”. However, the law firm noted in the report that its financial audit was not conducted to generally accepted auditing standards because it is not an accounting firm.