Stablecoin issuer Tether Limited confirmed Thursday it was banking with Bahamas-based Deltec Bank and Trust Limited and published a letter purportedly from the institution as evidence of its reserves.
The company, which issues the controversial tether (USDT) stablecoin, has long been under fire over concerns that it does not have the fiat holdings to fully back the tokens in circulation. It had been rumored for weeks to be working with Deltec but did not previously acknowledge the relationship.
"The acceptance of Tether Limited as a client of Deltec came after their due diligence review of our company," the issuer said in a blog post, adding:
"This included, notably, an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies."To show proof of its bank balance, Tether released a letter dated November 1 that appeared to come from Deltec, confirming "the portfolio cash value of your account with our bank was US$1,831,322,828" as of October 31.