Tether opens a bank account in the Bahamas

Tether Limited, the issuer of the controversial dollar-backed stablecoin USDT, has publicly confirmed that it has established a banking relationship with financial institution Deltec Bank in the Bahamas.

Deltec Bank opened the company's account after verifying information about whether the company could support the peg of the USDT token to the US dollar in the promised equivalent. According to CCN, the bank had been considering the application for several months, despite the fact that Tether has redeemed more than $1 billion in tokens since early October.

Tether Limited was accepted as a client by the bank after a thorough review of policies, vetting of shareholders, ultimate beneficiaries and employees, assessment of the ability to maintain a peg to the US dollar at any time and treasury management practices. The verification took several months and showed positive results, after which a bank account was opened with this institution.

Tether also published a letter from Deltec Bank confirming that the firm holds $1.83 billion in the bank, which is enough to fully cover the 1.78 billion USDT tokens. In the letter, Deltec Bank & Trust Limited emphasized that this confirmation is made without the bank accepting any obligations:

We hereby confirm that as of October 31, 2018, the amount of funds in the company's account is US$1,831,322,828. However, the bank does not take responsibility for refunding funds or securing tokens, and is based solely on information in its possession at the time.

 The firm was previously believed to be working with Noble Bank in Puerto Rico, which is now up for sale after departure of Tether and other large clients of the crypto industry. In June, Tether published a report from the law firm Freeh, Sporkin & Sullivan LLP, which reviewed the firm's bank accounts, determining that they contained sufficient funds to cover outstanding USDT tokens as of June 1.

According to ccn.com