Top stablecoin issuer company Tether established a partnership with Britannia Bank.
Tether is a subsidiary of Bitfinex crypto exchange. This company manages all kinds of financial operations behind USDT stablecoin. This year USDT secured enhanced gain in the crypto sector because of the struggling phase for its rival stablecoin USDC (Circle).
On 29 Aug 2023, Bloomberg reported that Tether firm instructed the USDT clients to send funds to Britannia Bank & Trust, a private bank based in The Bahamas to process dollar transfers on its platform.
On behalf of these financial relationships & insider information, report concluded that Tether partnered with Britannia Bank.
So far Tether officially hasn’t passed any statement about its partnership with this bank but as per reports Deltec Bank and Capital Union Bank are banking partners of this stablecoin issuer firm.
In the first four months of this year, USDT saw a 20% increment in its market cap & hit $80 billion. The current market cap of USDT is $82.86 and this is 66.5% of the total market share.
In Q1 & Q2, the majority of the crypto companies faced significant issues with their corresponding banking partners in the US jurisdiction.
The majority of the crypto entrepreneurs claimed that they are not getting banking partners and the existing old crypto companies faced huge pressure from the banks over their corresponding crypto business.
Following the bankruptcy of the FTX crypto exchange in Nov 2022, the US financial regulators increased their enforcement actions against the crypto companies badly.
Also this year, crypto-friendly banks (Silvergate Bank, Signature Bank, and Silicon Valley Bank) collapsed badly.
In June of this year, Tether firm signed a memorandum of understanding (MoU) with the Georgian government to help Georgia show the country’s position as a strong digital innovation leader in the world and boost digital innovations in the financial sector.
Read also: Crypto firm Grayscale secures regulatory win against US SEC