Tether And Bahamian Bank Start Collaboration
Tether Limited, a crypto startup that issues USDT stablecoins, confirmed that it got a bank account in the Bahamian Deltec Bank.
The team also posted its balance confirmation on Twitter, according to which the company has enough funds to back up each issued token.
We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited https://t.co/LSn64soUsC . Balance confirmation at 2018-10-31 attached.— Tether (@Tether_to) November 1, 2018
Tether became a client of Deltec Bank & Trust Limited, a financial institution in the Bahamas with more than 70 years of history, the report says. At the same time, the bank agreed to open the account only after a careful several-month audit of shareholders and directors, as well as the firm’s financial policy and compliance with the law. The bank reportedly considered the startup able to support USDT stablecoins with real US dollars.
Tether also attached a bank letter that confirms there were more than $1.83 billion on its account on October 31, 2018. According to CoinMarketCap, there are nearly 1.77 billion USDT tokens worth $1 in the market circulation.
Thus, the company wanted to reduce suspicions about issuing a large amount of unfunded stablecoins. However, users paid attention to the signature in a letter that was not followed by a name of any bank official.
Also a part of the community was worried about the fact that Deltec Bank is located in the Bahamas and may be an offshore bank. As a user under a nickname Crypto Entropy mentioned, the publication of such a dubious document will only scare investors more.
Previously, Tether burned 500 million USDT stablecoins.