- Tether has announced that it has a new banking partner, Bahamas-based Deltec Bank & Trust Ltd
- Their current balance is $1.8 billion
- This comes after ending the relationship with their previous banking partner, Noble bank, ended
Tether, while one of the most traded coins in existence, is also one of the most controversial. Most of this controversy is due to the fact that it is apparently backed with fiat currency. However, Tether has refused to be audited, leading some to believe that it is merely a manipulation tool for Bitcoin price.
However, Tether has made some revelations about their financing, stating that they have $1.8 billion with Bahamas-based Deltec Bank & Trust Ltd.
Their proof of this was a letter attributed to the bank which confirmed the amount held by Tether with them, though a spokesperson for the bank is yet to comment on the matter.
Deltec, according to their website, is “independent financial services group that delivers bespoke solutions,”
Tether has, for a long time, been believed to simply be created to manipulate the price of Bitcoin.
This was due to the fact that Tether’s claims of being backed by fiat currency had not been confirmed.
On top of that, certain patterns were observed in the rise and fall of the price of Bitcoin and the value of Tether.
However, a recent study seems to have debunked the claim, stating that the reason for the shifts was due to investors rushing to fiat-backed coins after a slump in the value of traditional cryptocurrencies.
Now that Tether has provided some proof of their funds, perhaps critics will have some more faith in them.
“This process of due diligence was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.” Tether said in their announcement.
This also addresses the issue of Tether’s previous bank, Noble bank, apparently being insolvent. The rumors of this led many to believe that Tether itself would lose all its funds.
This lead to further rumors that Binance would soon delist Tether back in October 2018. With this new move, it seems Tether is now out of the woods.