Tether Partners with Britannia Bank: Stablecoin Issuer Expands Banking Relationships in the Bahamas
Tether, the leading stablecoin issuer behind USDT, has recently announced a new partnership with Britannia Bank & Trust, a private bank based in The Bahamas. According to reports, Tether has instructed its clients to send money to Britannia’s bank account for processing dollar transfers on its platform.
While the exact start date of Tether’s banking relationship with Britannia Bank is unknown, Tether has previously partnered with other banking institutions such as Deltec Bank and Capital Union Bank.
In light of increased regulatory scrutiny from U.S. regulators following the collapse of FTX, many U.S.-based cryptocurrency firms have had to seek offshore banking partners. Tether’s decision to collaborate with Britannia Bank reflects this growing trend.
However, Tether’s lack of transparency regarding its balance sheet and banking relationships has raised concerns within the industry. Questions have been raised about how Tether securely stores its $86 billion in assets, leading to fears and uncertainties among market participants.
It’s worth noting that Tether’s USDT currently dominates the stablecoin market, with a market cap of $82.9 billion, accounting for 66.5% of the total market share, based on data from CoinGecko.
The market capitalization of USDT experienced a significant rally of over 20% in the first four months of 2023. This surge in value was observed during the banking crisis involving Silvergate Bank, Signature Bank, and Silicon Valley Bank. However, the market cap has since stabilized around the $80-82 billion mark.
For more insights on the risks associated with stablecoins, including depegging and bank runs, be sure to check out our comprehensive magazine article.