The avalanche of recent news on the Tether (USDT) stable coin continues today, as the opaque cryptocurrency company has reportedly secured its latest banking relationship with the Nassau-based Deltec Bank.
Deltec Bank & Trust Limited provides various financial services, and a Bloomberg article last year stated that the former chief investment officer Atul Lele managed $5 billion for Deltec.
This new banking relationship comes shortly after Tether’s previous arrangement, with Noble Bank of Puerto Rico, was reportedly ended under unknown circumstances. Bloomberg reported that “while Noble faced an audit from Puerto Rico’s main bank regulator last year that raised concerns […] it hasn’t been faulted publicly”.
Tether is loosing market share in stable coins battle.
Concerns over Tether, along with its sister company and crypto asset exchange Bitfinex, are suspected to have caused dramatic price movements in the preceding days, especially for crypto assets trading against Tether, which traded at historic premiums.
Tether and Bitfinex are registered in the British Virgin Islands and share management and investors. The companies together have a chequered history, largely because Tether has never allowed a legal audit which confirms the existence of U.S. dollars equal to printed Tether tokens.
Both companies were previously served by Wells Fargo & Co bank, and both were subpoenaed by the Commodities and Futures Trading Commission, which agency plays a cardinal role in the regulation of crypto assets in the U.S.
Tether is also finally facing serious competition in the stable coin space, as a rash of listings of new stable coins has come in the last couple of days, on the OKEx and Huobi exchanges. Paxos, True USD, Gemini Dollar, and Circle’s USDC will offer more options to the crypto asset industry for quickly moving dollars.