Deltec Chair Confirms Partnership With USDT
Deltec's chair has confirmed the legality of the deal. He said that Deltec adhered to all regulations before the account opened.
Tether’s Deal With Bahamas Bank Authentic
The Head of Deltec Bank has come out to confirm the validity of a letter on Tether opening an account with the Bahamas based bank. The circular was widely disseminated early this month stating that an account had been opened and had a deposit of more than $1.8 billion. This amount was sufficient to support all USDT tokens in the market at the 1:1 peg. However, a report published by CoinDesk stated that the letter was inauthentic.
According to the institution's representative Melanie Hutcheson, it was unethical to publicly share information regarding their client relationships. In an interview with CoinDesk, she said that such information has legal restrictions.
Concerns had been raised about the letter due to some features in contained. For example, it lacked a signature as well as the name of an employee at the institution.
In a later interview, Deltec chair Jean Chalopin published a link to the letter stating that Tether was allowed to announce the deal publicly. He dithered on confirming its authenticity until Saturday when he notified CoinDesk that it was indeed formal.
With the confirmation, it is now clear that Tether has now acquired a banking partner following several months of controversy.
At the beginning of last year, Tether alongside the Bitfinex trading platform lost their partnerships with Taiwanese banks. The termination came after Wells Fargo ended its relationship with the banks due to their partnership with Tether.
Reports later emerged indicating that Tether had inked a deal with a Puerto Rican bank. However, Tether and Bitfinex never came forth to acknowledge the deal.
Following the development, a phase of uncertainty kicked in. At the beginning of October Bitfinex attested that it was not collapsing while at the same time calling on clients to retain their banking information on a personal level as a means of containing the damage.
Following the development, Tether also lost its dollar peg after the market lost confidence in the token. Earlier on, Tether’s white paper had stated that the peg is to be maintained via full fiat currency support.
In a recent statement to CoinDesk, Chalopin said that Bahamian regulations did not allow Deltec to confirm the development at first. He maintained that Deltec had complied with all regulations especially the anti-money laundering laws. He added that before opening the account they ensured that a mechanism to curb tax evasion had been put in place.
A careful review of the letter shows that Deltec was keen to minimize any potential legal barriers. The letter maintained that content was solely based on information under Deltec’s possession.