Tether Limited, the company behind the stable coin USDT, has announced recently its newly established relationship with a financial institution, Deltec Bank and Trust Limited from the Bahamas. The move reportedly came after the lender’s”due diligence” on Tether Limited.
This effectively means the lender has gone through a large number of background checks on Tether to set up its assets and obligations before partnering with it.
Rumors and speculation have now been discredited Tether for a long time, especially considering Wells Fargo, determined not to have Tether and Bitfinex because its own customers. Tether Limited and also Bitfinex were banks together with Puerto Rico’s Noble Bank until the bank decided differently.
Tether and Bitfinex have both faced insolvency issues due to banking difficulties and Tether’s costs have dropped to a 18-month reduced i.e, $0.97 and resurfaced. Bitfinex lately attempted to shoo-away their insolvency issues by releasing a post on Medium.
After their reviewing Tether deltec Bank and Trust Limited have approved Tether. Tether’s official announcement:
“The acceptance of Tether Limited as a customer is following a review of our company. That included, notably, an investigation of our compliance processes, policies, and procedures; a full background check of the bankers, ultimate beneficiaries and officers of our company; and evaluations of our capacity to keep the USD-peg at any time and our treasury management policies.”
Tether also confirmed this due diligence occurred over a span of several months and the bank would review Tether within an ongoing foundation.
The Deltec Bank also has issued a letter confirming portfolio money value of Tether’s account valued at $1.83 billion. The bank certainly mentions that the correspondence is given with no ‘accountability’ and it’is solely dependent on the information currently in our possession,’ which seems vague.
On the other hand, the previous attestation was completed in June 2018 by law firm Freeh, Sporkin & Sullivan LLP, that confirmed ‘Tether’s unencumbered assets exceed the equilibrium of fully-backed USD Tethers in circulation.’
