Tether confirmed the existence of a banking partnership in the Bahamas

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NEWS 01.11.2018
Tether Limited, the Issuer of the USD-pegged stablecoin USDT, has officially confirmed its cooperation with Deltec Bank, A small financial institution from the Bahamas. The company also submitted a letter on the basis of which it has sufficient funds to ensure the entire volume of issued usdt tokens.

We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited https://tether.to/tether-banking-relationship-announced/ ... . Balance confirmation at 2018-10-31 attached.

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18:25 - 1 Nov 2018
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"Tether Limited is pleased to confirm that it has established a relationship with Deltec Bank & Trust Limited, a financial institution with a 72-year history and headquartered in the Commonwealth of the Bahamas," the company said in a statement.

It is also noted that tether Limited was accepted as a Deltec customer after a thorough audit of The company. This allegedly includes an analysis of processes, policies and legal compliance, a full review of shareholders, ultimate beneficiaries and managers of Tether Limited, as well as an assessment of the company's ability to maintain a peg to the us dollar at any given time and its reserve management policy

"The audit took several months and yielded positive results, which allowed us to open a Bank account in this institution. Deltec conducts inspections of our company on a regular basis, " added Tether.

Tether's statement also States that the company is registered with the financial crimes enforcement Network (FINCEN) and the U.S. Treasury Department and adheres to the highest standards in anti-money laundering and anti-terrorist financing procedures.

The message is accompanied by a link to a letter from Deltec Bank, which says that at the end of the working day on October 31, 2018, the cash value of the tether account was $1 831 322 828.

"This letter is provided without any obligation on our part and is based solely on the information that is at our disposal," the document says.

Thus, based on this letter and taking into account the current capitalization of USDT ($1.772 billion), Tether really has sufficient funds to ensure the entire volume of issued tokens. The question of whether they were provided at all stages of the company's activities, however, remains open.

Also draws attention to the fact that the above letter, contrary to accepted practice, does not have the signature of any official of the Bank.

The fact that Tether could find a banking partner in the Bahamas, first became known in mid-October. At the same time, it was reported that the Bitfinex exchange affiliated with Tether concluded a partnership agreement with the Hong Kong Bank of Communications, partially owned by the financial conglomerate HSBC Holdings. This information, however, has not yet been confirmed.

Recall that over the past month, the capitalization of the usdt token decreased by more than $1 billion.

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