Tether confirms banking arrangement to dispel insolvency rumours

Cryptocurrency's highest market-cap stablecoin, USD-Tether, has revealed its banking arrangements, proving that the rumours of insolvency are false

Bitfinex’s native stablecoin, USD-Tether, has confirmed a banking arrangement with Bahama-based Deltec Bank & Trust.

Rumours of insolvency have been rife over the past month, with Tether’s price crashing to as low as $0.89 at the start of October as a result. However, it has moved to rule out such concerns, including issuing a signed letter from Deltec Bank, confirming that it had $1.8 billion in its portfolio.

In an official statement on its website, it wrote: “Tether is pleased to confirm that it has established a banking relationship with Deltec Bank & Trust”.

“The acceptance of Tether as a client of Deltec came after their due diligence review of our company. This included, notably, an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies.”

The statement continued: “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”

Tether is registered with the Financial Crimes Enforcement Network of the US Department of the Treasury and maintains the highest standards of AML/CFT procedures. USDT in the market are fully backed by US dollars that are safely deposited in our bank accounts,” it added.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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