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.”