The company behind the controversial stablecoin Tether (USDT), Tether Limited, announced that from now on, its funds will be handled by the Deltec Bank, located in the Bahamas.
According to the statement published yesterday on its website, the agreement with the Caribbean financial institution was achieved after a period of reviews and evaluations to the company that lasted several months. A very important part of the evaluation period was based on the verification of Tether’s ability to maintain its USDT pegged to one dollar per unit.
Also, the statement points other aspects taken into consideration in the investigation made by the bank located in Nassau, before approving the commercial relationship between both institutions.
An analysis of their compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and Tether’s officers, as well as their treasury management policies.
On the other hand, a letter that was attributed to Deltec Bank was published, in which not only is confirmed their business relationship, but also indicates that Tether has almost $2 billion in the bank – enough money to back up the assets that cover the 1.78 billion in pending USDT.
However, the letter emphasizes that the same “is provided without any liability, however arising, on the part of Deltec Bank & Trust Limited, its officers, directors, employees and shareholders, and is solely based on the information that is currently in our possession.”
Trying to improve their reputation?
Tether is a stablecoin that cannot boast of having a great reputation in the crypto community. This is due to the multiple controversies in which it has been involved.
For example, between November 2016 and November 2017, its market capitalization increased 100%, which raised suspicions of manipulation due to its close relationship with crypto exchange Bitfinex.
Likewise, the lack of support to prove the existence of the dollar reserves that they claimed to possess and the destruction of more than USD 500 million of Tether’s wallet to stabilize its price alarmed the ecosystem investors and analysts.
Still, the crypto asset has its good pack of supporters. Recently it was announced that Ledger had added the stablecoin to its platform and that it was already compatible with Ledger Nano and Ledger Blue. Now Deltec Bank through a letter ensures that the digital currency linked to the US dollar has the funds that support it.