Nassau, Bahamas has seen a huge injection of money into their banking sector as Tether Limited, the issuer of the 1:1 USD-pegged stablecoin tether (USDT), has announced their new banking ties with Deltec Bank, a 72-year-old financial institution. While the company has been surrounded by controversy due to their lack of transparency, especially with the realization that the stablecoin may not be backed 1:1 by the USD, have once again made news with the revelation of their new accounts.
The company made an official announcement through their Twitter account:
“We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited https://tether.to/tether-banking-relationship-announced/ … . Balance confirmation at 2018-10-31 attached.”
According to the announcement, Tether has claimed that they have going through thorough examination by the Nassau-based bank. One of the main factors for accepting the crypto firm as a client was to determine if Tether could sustain the 1 USDT to 1 USD pegging. This seems to come as a surprise considering that the stable coin had fallen below the $1.00 mark recently, and Tether’s market cap dropping by more than $1 billion in the month of October. Tether Limited even redeemed another 100 million units of USDT, which reduced the outstanding supply to around 1.8 billion.
The company attached on their site the letter from Deltec confirming the account, which holds in its portfolio, $1,831,322,828. This account holds more than enough funds to back the 1.78 billion in outstanding USDT. The letter goes on to state that it is provided without liability to the bank and its employees.
The letter reads:
“We hereby confirm that, as at the close of business on October 31, 2018, the portfolio cash value of your account with our bank was US$1,831,322,828.
“This letter is provided without any liability, however arising, on the part of Deltec Bank & Trust Limited, its officers, directors, employees and shareholders, and is solely based on the information that is currently in our possession.”
The company’s site goes on to confirm that they are registered with the Financial Crimes Enforcement Network of the US Department of the Treasury and include strict in-house standards of AML/CFT procedures. They also go on to claim that the USDT in the market are pegged 1:1 by US dollars, which are securely deposited in their bank accounts.