Tether’s reported new relationship with Britannia Bank makes the bank the third in the Bahamas to join forces with the stablecoin issuer. Tether, the stablecoin powering USDT, has apparently added Britannia Bank & Trust, a private bank based in the Bahamas, to its platform to execute dollar transfers.
According to a Bloomberg story on Aug. 29 that quoted people familiar with the situation, Tether has encouraged consumers to wire money to Britannia’s bank account in recent months.
However, it is unclear when Tether’s banking relationship with Britannia Bank began, as it has previously reported banking relationships with Deltec Bank and Capital Union Bank.
Following the shocking collapse of FTX in November, cryptocurrency enterprises operating in the United States have had to increasingly go offshore for banking partners in recent months. Tether’s refusal to publicly disclose the full depth of its balance sheet and banking partnerships has already created industry FUD (fear, uncertainty, and doubt) about how the stablecoin issuer stores its $86 billion in assets.
The US Federal Reserve is increasing its regulation of banks’ participation with cryptocurrency startups. USDT’s market cap increased by more than 20% to $80 billion in the first four months of 2023, during the banking crisis affecting Silvergate Bank, Signature Bank, and Silicon Valley Bank, but has since settled in the $80-82 billion range.