Tether Limited, the issuers of the highly popular yet equally controversial stablecoin Tether USDT, -0.56%, have announced Bahamas-based Deltec Bank & Trust Limited as their new banking partner. This announcement comes two weeks after The Block reported that Deltec was Tether’s new bank after its business relationship with Puerto Rico-based Noble Bank came to an end. According to Tether, Deltec performed a comprehensive review process which spanned several months, and ultimately decided to accept Tether as a client:
“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.”
Once again, Tether emphasized that all of the USDT tokens in circulation are backed by USD reserves held in company’s bank accounts. They also provide a letter from Deltec which states that the portfolio cash value of Tether’s account at Deltec was $1,831,322,828 as of October 31.
As expected, the letter has become the subject of intense scrutiny on various social media platforms and cryptocurrency-focused media outlets. The most common criticisms point out the that the letter doesn’t contain the name of a single person and that its text is intentionally vague.
In any case, USDT is making its way back to its $1 peg. USDT is currently trading for $0.992 on Krakenafter briefly dropping as low as $0.85 on October 15. The “Tether premium” on USDT/crypto pairs has also been shrinking, but is still present – Bitcoin BTC, 0.44% is currently trading for 6,410 USDT on Bitfinex, while it is trading at around $6,350 on Coinbase Pro, Bitstamp and Gemini.