Tether Limited, the creator of Tether (USDT), has recently confirmed rumors that it has formed a banking relationship with Deltec Bank & Trust Limited — a private bank operating out of the Bahamas.
In its most recent blog post, Tether notes that the banking relationship was formed following extensive due diligence procedures carried out by the bank:
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. […] Deltec reviews our company on an ongoing basis.
In a rare move of (relative) transparency, Tether (USDT) also included a letter from Deltec clarifying the exact amount of funds held in its account — totaling more than $1.83 billion. That is more than enough to cover the value of the current circulating supply of USDT.
Deltec also noted that the information is offered without liability to the bank.
Tether likely included the letter to refute those accusing the company of having insufficient USD reserves to back the circulating USDT, operating a fractional reserve. Tether has refuted this in the past, and previously demonstrated proof of funds in a widely criticized September 2017 report and again in a ‘transparency update’ posted in June .
In the weeks prior to the announcement, Tether hit a period of turbulence and saw its value drop to as low as 80 cents on U.S. cryptocurrency exchange Kraken on October 15. The flash crash came following false reports that Binance would be delisting the stable coin.
Today, Tether (USDT) is currently trading at close to 99 cents each, having almost recovered from the blip .
What is your opinion on Tether? Has it done enough to silence the naysayers, or do you think there is still something fishy going on? Let us know your thoughts in the comments below!
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