Tether-Issuer Noble Bank International Looks for a Buyer after Profits Decline
Noble Bank International Is looking For A Buyer After Profits Decline
According to a reliable source, the Noble Bank International is seeking a buyer. The bank, based in Puerto Rico, is the preferred financial institution for several notable digital currency companies. Apparently, the need to sell is as a result of the loss of several customers, including Bitfinex and Tether.
For this reason, the business is no longer sustainable. The source, who requested to remain anonymous, further revealed that the asking price would range between $5 million and $10 million, a figure that is largely influenced by the bank’s license to operate as an international financial enterprise.
Upon inquiry, a spokesperson form the Noble Bank International refused to comment on the matter. Likewise, Bitfinex and Tether did not respond to queries sent to them.
Although volatility and fluctuations in prices is a typical characteristic of digital currencies, this year has been overly adverse to this asset class. For instance, the price of Bitcoin has dropped by almost 70% from its record high in December 2017.
The Noble bank came into the limelight after it accepted to work with Tether and Bitfinex after they had been subpoenaed by the US Commodity Futures Trading Commission in December. The order sought to establish whether Tether had in its possession $2 billion to support the assets users had invested in their cryptocurrency token. Regardless, neither Tether nor Bitfinex faced criminal charges.
Also, the Noble bank has not been accused of breaking any law, despite being audited by the Puerto Rican central bank.
Earlier this year, Tether publicized the results of an audit conducted by an independent law firm showing that the company had sufficient dollar reserves to back the Tether digital currency (USDT). Nevertheless, there are still questions of over the nature of the business conducted by Bitfinex and Tether, especially if they fabricate the price of Bitcoin and other altcoins. This is because the audits were not conducted in public.
The Popularity of Noble Bank International
The influx of cash associated with virtual currencies has been significant in Puerto Rico. At the end of last year, the Puerto Rican financial regulatory authority reported that the total worth of crypto assets held by international financial companies such as the Noble Bank was $3.3 billion. In 2016, this value was a measly $191 million. However, the value had reduced to $2.6 billion by the end of June 2018. Most of this money is thought to be in the custody of Noble Bank International.
According to its website, the Noble Bank International has enlisted the New York-based Mellon Corp Bank as the custodian of its assets. However, a source revealed that the two entities no longer work together. Upon inquiry, the Mellon Corp bank’s spokesperson, Peter Gau, refused to comment.
Since it is an international financial institution, the Noble Bank is obligated to report all suspicious activities and cooperate with the US government to curb instances of money laundering and other forms of fraud. Nonetheless, non-Americans can easily remain anonymous if they register their assets using offshore companies.