Tether, the stablecoin issuer behind USDT, has reportedly added Britannia Financial institution & Belief, a non-public financial institution primarily based in The Bahamas to course of greenback transfers on its platform.

It’s understood Tether has instructed purchasers to ship cash to Britannia’s checking account over the previous few months, in accordance to an Aug. 29 report by Bloomberg, citing folks aware of the matter.

Nevertheless, it isn’t clear when Tether’s banking relationship with Britannia Financial institution began, however its different reported banking companions embrace Deltec Financial institution and Capital Union Financial institution.

In latest months, United States-based cryptocurrency corporations have needed to more and more look offshore for banking companions amid elevated scrutiny by U.S. regulators following the shock collapse of FTX in November.

Tether’s unwillingness to publicly disclose the total extent of its steadiness sheet and banking relationships has additionally fueled business FUD (an acronym for worry, uncertainty and doubt) previously over how the stablecoin issuer shops its $86 billion in property.

Associated: US Fed steps up oversight of banks’ involvement with crypto corporations

Tether’s USDT presently dominates the stablecoin market, with its $82.9 billion market cap representing 66.5% of the whole market, in accordance to CoinGecko.

USDT’s market cap rallied over 20% to $80 billion over the primary 4 months of 2023 — amid the banking disaster involving Silvergate Financial institution, Signature Financial institution and Silicon Valley Financial institution — however has since steadied out across the $80-82 billion since then.

USDT’s change in market cap over the past 12 months. Supply: CoinGecko

Journal: Unstablecoins: Depegging, financial institution runs and different dangers loom