Tether has had some of its reserves in an obscure bank in the Bahamas but has yet to confirm whether or not it is true
Tether Stored Some Of Its Reserve In An Obscure Bank
According to a recent story published by The Financial Times, controversial stablecoin issuer Tether has relied on an unknown bank in the Bahamas to deposit some of its reserves.
Last year, Capital Union, a Nassau-based banking company, embarked on bitcoin research. In order to ensure compliance and detect problematic transactions, the bank selected famed blockchain sleuth Chainalysis as its compliance partner last month.
The stablecoin has yet to clarify whether it has maintained reserves at the small Bahamas bank.
USDT Is No Stranger To Criticism
Tether is no stranger to criticism, but the stablecoin came under closer scrutiny earlier this month after detaching somewhat from its peg following the Tether (USDT) crash.
Despite the fact that it was able to quickly recover its peg, this supplied additional ammo to those who claim the world’s largest cryptocurrency is bankrupt.
The stablecoin, which has previously been accused of insolvency, has been tight-lipped about where the company keeps its bank money.
Tether was fined $41 million by the Commodity Futures Trading Commission last year for misrepresenting its stablecoin reserves.
It had neglected to declare that the flagship stablecoin was backed in part by non-fiat assets.
The business announced earlier this month that it had cut its hazardous commercial paper exposure to only 17 percent while raising its investment in US government bonds to 13 percent.
According to the company’s quarterly reports, its reserves also contain cryptocurrency and precious metals.
The stablecoin presently has a market capitalization of $72 billion.
