Tether Rumors Come True as USDT Crypto Stablecoin's New Deltec Bank Relationship in Bahamas for Holdings is Real

Following Weeks of Rumors, Tether Confirms New Banking Relationship with Deltec Bank in the Bahamas for Holdings

Rumors began about two weeks ago that Tether was holding reserves in a new location, according to The Block. At the time, the publication theorized that the potential reports that Tether, along with Bitfinex, had moved their banking to Deltec. They noted that Tether’s former relationship was with Puerto Rico’s Noble Bank. Now, it seems that Tether has finally confirmed the move in a post on Twitter on November 1st.

Tether posted, “We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited.” The post includes a link and an image of the new bank account, which confirms their balance of $1,831,322,828 in USD at the close of business on October 31st. However, the curious part about this letter is that there’s no name of someone to hold accountable, and the signature illegible, at best. Still, the letter noted that it was provided “without liability,” and that it is only based on the information that the entity has access to.

Based on their announcement on their official website, the company noted that the decision for Deltec to accept them only occurred after “their due diligence review” of the company. The announcement notes that their evaluation went over the compliance protocols and a background check involving the members involved with the core company (excluding crypto investors). They also examined “assessments of our ability to maintain the USD-peg at any moment.” The process took “several months” to complete before the account was officially opened.

Still, it’s important for consumers to remember that, as recently as October 18th, Deltec Bank had refused to confirm their relationship with Tether, going as far as to say that “Due to governing legislation and our own privacy policies, we cannot comment on whether any entity is or is not a client of the Bank,” according to CoinDesk. The statement added a confirmation that all of the relationships that they hold with clients are “compliant with all applicable banking regulations,” and that they adhere to the policies that govern the safety and sound risk management of the company.

While there is a lot of discussion on social media about the validity of the document and the doubt regarding why this document was so easily produced suddenly, the questions have yet to be answered. Investors are remaining doubtful still, considering that there has been no audit to reassure the public.

However, Tether has said that this type of documentation is not possible. Since Tether often keeps their investors in the loop via Twitter, time will tell if there will be additional interviews and posts to find out more details. In the meantime, Deltec plans to continue the review of Tether throughout their relationship.

At the time of this article, according to CoinMarketCap, Tether is presently trading at $0.996874, increasing by 0.83% in the last 24 hours. The current market cap is $1,770,868,026.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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