Tether Announces Partnership with Bahamas-Based Private Banking Institution Britannia: Report
Tether has announced a new partnership with Britannia Bank, becoming the third bank in the Bahamas to join forces.
Tether, the stablecoin behind USDT has reportedly added Britannia Bank & Trust to its platform. Britannia Bank & Trust is a private bank based in the Bahamas that processes dollar transfers.
Bloomberg reported on Aug. 29 that Tether has instructed its customers to transfer funds to Britannia Bank accounts for the past few months.
It is not clear when Tether started its banking relationship with Britannia Bank, however, it has also been reported that Deltec Bank and Capital Union Bank are Tether’s other banking partners.
Since the FTX collapse in November, US-based cryptocurrency companies have been forced to seek offshore banking partners due to increasing scrutiny from US regulators.
Tether’s refusal to disclose its full balance sheet and banking relationship has also caused FUD in the industry in the past, as it was unclear how the stablecoin issuer held its $86 billion in assets.
Tether’s USDT currently dominates the stablecoin markets, with its $82.9 billion market cap accounting for 66.5%, according to CoinGecko. USDT’s market cap rose by over 20% to $80 billion in the first four months of 2023 – amid the banking crises surrounding Silvergate Bank Signature Bank and Silicon Valley Bank – but has since settled at around Leveled at $80-82 billion.