USDT stablecoin issuer Tether has signed an agreement with private Bahamian bank Britannia Bank & Trust to process dollar transfers. It is reported by Bloomberg.
The stablecoin issuer has been asking its customers to send funds to the accounts of a new partner in recent months, the source said. It is not known for certain when their collaboration began.
Journalists also noted that Tether works with two more banks in the Bahamas – Capital Union Bank and Deltec Bank. The company began to interact with the latter in 2018 after the termination of the contract with Noble Bank.
At the time of writing, USDT dominates the stablecoin market at 66.5% with a market cap of $82.9 billion, according to CoinGecko.
However, Tether rarely publicly discloses information about its banking relationships. This approach to business raises questions about the reliability of the storage of security from the community and experts.
“This secrecy continues to be a major impediment to the development of the cryptocurrency industry, holding back regulatory approvals on other issues and hampering traditional asset managers who are exposed to regulatory risks due to their active participation in the industry,” said Patrick Tan, general counsel at ChainArgos analytics firm.
Tether previously reported $850 million in net profit in the second quarter. According to the report, 85% of USDT collateral is in cash and cash equivalents. The company invested $72.5 billion in US Treasury securities.
Recall that in May, the company’s technical director Paolo Ardoino said that the high profitability of the issuer makes it possible to consider new business areas.
Later it became known that Tether invested $1 billion in a bitcoin mining project in El Salvador.
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