Tether has added Britannia Bank & Trust as a banking partner to process US Dollar transfers.
The Bahamas-based private bank will help the USDT issuer’s banking needs after US banks cut ties with crypto.
The stablecoin firm reportedly instructed clients to send funds to Britannia’s account in recent months.
Tether, the crypto giant behind the world’s largest stablecoin, has reportedly found a new banking partner in the Britannia Financial Group. The USDT issuer has been leaning on Bahamas-based Britannia Bank & Trust to process its US Dollar transfers amid an exodus of traditional financial institutions from the crypto industry.
Britannia Bank Received Funds From Tether’s Clients
Citing people familiar with the matter, Bloomberg recently reported that Tether had added Britannia Bank & Trust to process dollar transfers. The stablecoin giant reportedly asked its customers to send funds to the privately-operated bank’s account in recent months.
It is unclear when Tether’s banking relationship with the Bahamas-based firm started. The USDT issuer didn’t respond to Bloomberg’s request for comment, while Britannia Financial Group declined to comment on its relationship with the stablecoin firm.
The bankruptcies and scandals in the crypto industry over the past year have prompted several banks to cut ties with firms operating in this space. Several notable crypto firms including crypto exchange Binance have lost banking partners due to the turmoil in the industry.
Bloomberg’s latest report provides much-needed insight into Tether’s banking relationships, which have historically been shrouded in secrecy. In 2018, the stablecoin firm confirmed that it had partnered with Bahamas-based Deltec Bank & Trust, just weeks after parting ways with Noble Bank. Capital Union, another bank operating in the Bahamas, is the USDT issuer’s other publicly known banking partner.
The lack of transparency surrounding Tether’s banking relationships, balance sheets, and corporate structure has led to considerable FUD and regulatory scrutiny in the past. Despite this, USDT remains the top stablecoin in the crypto market, boasting a market share of 66.5% with a market capitalization of more than $82 billion.