- Tether has added Britannia Bank & Trust as a banking partner to process US dollar transfers.
- The Bahamas-based private bank will help USDT issuers with their banking needs after US banks cut ties with the cryptocurrency.
- The stablecoin company has reportedly instructed customers to send funds to Britannia’s accounts in recent months.
Cryptocurrency giant Tether, which owns the world’s largest stablecoin, has reportedly found a new banking partner in Britannia Financial Group. USDT issuers have been relying on Bahamas-based Britannia Bank & Trust to process US dollar transfers amid the exodus of traditional financial institutions from the cryptocurrency industry.
Britannia Bank received funds from Tether customers.
Tether recently added Britannia Bank & Trust to process dollar transfers, Bloomberg reported, citing people familiar with the matter. The stablecoin giant has reportedly been asking customers in recent months to send funds to privately operated bank accounts.
It is unclear when Tether’s financial relationship with Bahamas-based Tether began. The USDT issuer did not respond to Bloomberg’s request for comment, and Britannia Financial Group declined to comment on its relationship with the stablecoin company.
Bankruptcies and scandals in the cryptocurrency industry over the past year have led several banks to cut ties with companies operating in the sector. Several prominent cryptocurrency companies, including cryptocurrency exchange Binance, have lost banking partners due to industry turmoil.
Bloomberg’s latest report provides much-needed insight into Tether’s banking relationships, which have historically been shrouded in secrecy. In 2018, the stablecoin company confirmed a partnership with Bahamas-based Deltec Bank & Trust, just weeks after parting ways with Noble Bank. Capital Union, another bank operating in the Bahamas, is another disclosed banking partner of the USDT issuer.
The lack of transparency surrounding Tether’s banking relationships, balance sheet, and corporate structure has led to significant FUD and regulatory scrutiny in the past. Nonetheless, USDT remains the top stablecoin in the cryptocurrency market, boasting a 66.5% market share with a market capitalization of over $82 billion.