Tether, the stablecoin issuer behind USDT, has reportedly partnered with Bahamian private bank Britannia Bank & Trust to process USD transfers on its platform.
According to a Bloomberg report on August 29, citing people familiar with the matter, it is understood that Tether has instructed customers to wire funds into Britannia’s bank accounts in the past few months.
However, it is unclear when Tether’s banking relationship with Bank of Britannia began, but its other banking partners reportedly include Deltec Bank and Capital Union Bank.
U.S.-based cryptocurrency firms have increasingly had to look overseas for banking partners in recent months as U.S. regulators stepped up scrutiny following the November collapse of FTX.
Tether’s reluctance to publicly disclose the full extent of its balance sheet and banking relationships has also fueled FUD (short for fear, uncertainty, and doubt) in the industry over how the stablecoin issuer is storing its $86 billion in assets in the past.
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Tether’s USDT currently dominates the stablecoin market, with a market capitalization of $82.9 billion or 66.5% of the total market, according to CoinGecko.
During the banking crisis involving Silvergate Bank, Signature Bank, and Silicon Valley Bank, USDT’s market capitalization rose more than 20% to $80 billion in the first four months of 2023, but has since stabilized at around $8-82 billion.
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