Tether, issuer of controversial stablecoin USDT, has announced that it opened a bank account for $1.8 billion in one of the banks on the Bahamas.

Welcome to the Bahamas

Tether Limited, the issuer of stablecoin USDT, pegged to the US dollar, confirmed that it had opened an account in the Nassau-based Deltec Bank. According to the statement issued reportedly by the bank, as of October 31, Tether’s had approximately $1,83 billion in its account in Deltec Bank. Currently, USDT tokens worth about $1.78 billion are in circulation, so the Tether deposit in Deltec fully covers the cost of issued tokens.

Before opening the account, Deltec analyzed Tether’s financial state for several months and assessed whether the company could keep the USDT rate at the required level of $1.

"The acceptance of Tether Limited as a client of Deltec came after their due diligence review of our company. This included, notably, an analysis of our compliance processes, policies, and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies. 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's official statement reads.

From Puerto Rico to the Bahamas

The rumors about Tether's partnership with the Bahamian Deltec bank appeared for the first time on The Block news portal on October 17. Previously, according to unconfirmed information, Tether held deposits in the Puerto Rica-based Noble Bank. But this year, it faced financial problems, presumably connected with the fall of the cryptocurrency market.

With increasing fears about the possible financial crash of both Tether’s banking partner and the issuing company, the USDT stablecoin fell in price by 10% to $0,9, while several cryptocurrency exchanges began to add to their listings new stablecoins in a hurry. Many of those stablecoins are more open, publish audit reports, and contact with financial regulators.