By James Lawrence - News - 1 month ago

Tether Announces New (new) Banking Partner

Thursday, November 1, Tether took to Twitter to confirm the troubled stablecoin has partnered with a new bank, Deltec Bank & Trust Limited (Deltec), headquartered in the Commonwealth of the Bahamas. Deltec is the newest bank in a long line of brick and mortar establishments to ‘confirm’ Tether’s balance to match the amount of USDT in circulation.

The tweet read: “We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited… Balance confirmation at 2018-10-31 attached.”

The announcement comes around a month after it was revealed both Tether and Bitfinex had left Puerto Rico registered Noble Bank International.

As mentioned in the quoted tweet, Tether attached a ‘confirmation’ of their Deltec account balance. In a brief post Tether claims Deltec only accepted the stablecoin as a client after performing a series of due diligence reviews and procedures,

“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.”

Along with this post is an attached PDF penned by Deltec confirming the “portfolio cash value of your account with our bank was US$1,831,322,828,” at the close of business on October 31st. The letter has already raised a few eyebrows.

Most obviously is that the letter isn’t signed off by any single person, instead, it reads, “Yours faithfully, Delta Bank & Trust Limited” with a scrawled single pen line as an excuse for a signature in between. Deltec was also clear to qualify that the confirmation of Tether’s cash portfolio value was “based on the information currently in our possession.” The letter also insists it is provided without liability. All in all, concerning.

Reddit user u/PureOrangeJuche also noted in a thread relating to the Deltec letter, that “the document reads as "Modified" in the Metadata? The pdf was edited before being uploaded.” Which drew an immediate response from another user suggesting the lack of foresight “is fucking amateur hour, I mean edit it, print then scan.”

Over the last month, Tether has had to bear the brunt of intense scrutiny amid allegations from not holding the reserve it claims, to market manipulation, its dubious connections to Bitfinex exchange and general doubt cast upon stablecoin economics.