In a recent announcement, controversial stablecoin Tether (USDT) parent company posted, “Tether Limited is pleased to confirm that it has established a banking relationship with Deltec Bank & Trust Limited (Deltec), a 72-year-old financial institution with headquarters in the Commonwealth of The Bahamas.”
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Tether Limited Announces Banking Relationship
In a letter from Deltec, dated 1 November 2018, bank assures, “The acceptance of Tether Limited 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 irony will not be lost on critics of Tether Limited, parent company to the controversial stablecoin USDT. The stablecoin, as it is known, was basically the first of its kind, and in recent years USDT has been the subject of a lot of speculation and worry.
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USDT is touted as a direct, 1:1, backing of bitcoin core (BTC) with US government fiat. However, no independent auditing of company finances to verify funds are held in reserve has only heightened skepticism about the coin’s true nature.
“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 basis,” Deltec explained, claiming further, “Tether Limited 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.”
The announcement ultimately confirms much speculation Tether did indeed have a relationship with Deltec, which is based in the Bahamas. The newly formalized teaming will no doubt fuel even more speculation.
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