Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: Pegasus on November 02, 2018, 11:05:36 AM
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Tether Limited, the company behind the popular US dollar-pegged stablecoin Tether (USDT), has established a new banking relationship with Bahama-based Deltec Bank & Trust.
According to an official statement released on Thursday, Deltec accepted Tether as a client after a detailed review of the company, including compliance processes, policies and procedures, a full background check of the shareholders, ultimate beneficiaries and officers, as well as assessments of the project’s ability to maintain the “USD-peg at any moment”.
“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,” Tether noted.
The company further provided a letter from Deltec which states that Tether has a balance in its USD account of $1,831,322,828. The reserve funds exceed the amount of USDT coins currently in circulation by more than $50 million.
Late last year, the US Commodities Futures Trading Commission (CFTC) subpoenaed Tether, seeking proof that the stablecoin is backed by a sufficient reserve of US dollars. While Tether and its developers were not accused of wrongdoing, the controversy persisted, underpinned by Tether’s refusal to be audited and reports alleging the stablecoin was linked to Bitcoin (BTC) price manipulation.
In addition, the number of USDT in circulation has been significantly reduced in recent weeks amid speculation regarding associated cryptocurrency exchange Bitfinex’s insolvency. The total withdrawals of Tether from the market in October exceeded 1.3 billion units.
Thursday’s announcement confirms rumors circulating for months that Deltec would be Tether new banking partner. Previously, the project was said to be banking at Puerto Rico-based Noble Bank, which has reportedly gone insolvent.
As of press time, USDT is changing hands at $0.996, falling just short of its $1 peg. Its market cap stood at $1.77 billion, positioning the coin as the ninth-largest crypto asset in CoinMarketCap’s chart.
Source (https://cryptovest.com/news/tether-announces-new-banking-partnership-with-deltec/)
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This is a great news, especially after all the FUD that was spreading the last couple of days. I wonder what the opinion of the FUD spreader now. Is this news enough to make USDT back $1+ or at least $1=? I think it will.
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Thursday’s announcement confirms rumors circulating for months that Deltec would be Tether new banking partner. Previously, the project was said to be banking at Puerto Rico-based Noble Bank, which has reportedly gone insolvent.