Tether Claims $1.8B Banking Relationship with Deltec Bank & Trust Ltd





Tether Ltd, the company responsible for issuing dollar-backed USDT tokens, confirmed on Thursday via the Tether blog that it had established a $1.8 Billion banking relationship with Bahamas-based Deltec Bank & Trust Ltd.

The announcement comes one month to the day since Bloomberg reported that Tether had ended its relationship with now-unprofitable Puerto Rico-based Noble Bank.

The bulk of the blog announcement was spent drawing attention to Deltec’s due diligence review of Tether’s compliance processes, Tether’s obligation to uphold AML/CFT procedures, and the stablecoin’s ability to maintain US dollar parity through a proof of funds letter - in an attempt to dispel claims to the contrary.  

According to the company's post:

“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 assessments of our ability to maintain the USD-peg at any moment and our treasury management policies. This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.”

Author: Timothy Goggin

Timothy Goggin is an economic analyst with an interest in the application of moral philosophy and decentralized systems. He studied economics at the Business School at Victoria University of Wellington, New Zealand. His area of research is the consequential and moral dimensions of implementing digital currencies and the resulting synergies for consumers in the trading environment.

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