Tether adds Bahamas-based private bank Britannia as partner: Report

Tether, the stablecoin issuer behind USDT, has reportedly added Britannia Financial institution & Belief, a personal financial institution based mostly in The Bahamas to course of greenback transfers on its platform.

It’s understood Tether has instructed purchasers to ship cash to Britannia’s checking account over the previous couple of months, in response to an Aug. 29 report by Bloomberg, citing individuals accustomed to the matter.

Nevertheless, it isn’t clear when Tether’s banking relationship with Britannia Financial institution began, however its different reported banking companions embody Deltec Financial institution and Capital Union Financial institution.

In current months, United States-based cryptocurrency companies have needed to more and more look offshore for banking companions amid elevated scrutiny by U.S. regulators following the shock collapse of FTX in November.

Tether’s unwillingness to publicly disclose the total extent of its stability sheet and banking relationships has additionally fueled trade FUD (an acronym for concern, uncertainty and doubt) prior to now over how the stablecoin issuer shops its $86 billion in property.

Associated: US Fed steps up oversight of banks’ involvement with crypto companies

Tether’s USDT at present dominates the stablecoin market, with its $82.9 billion market cap representing 66.5% of the entire market, in response to CoinGecko.

USDT’s market cap rallied over 20% to $80 billion over the primary 4 months of 2023 — amid the banking disaster involving Silvergate Financial institution, Signature Financial institution and Silicon Valley Financial institution — however has since steadied out across the $80-82 billion since then.

Journal: Unstablecoins: Depegging, financial institution runs and different dangers loom