By
Bhushan Akolkar
April 30th, 2024
While the exact start date of Tether’s partnership with the bank remains undisclosed, the crypto-focused company has historically been discreet about its banking relationships.
Tether, the cryptocurrency giant behind the world’s largest stablecoin, USDT, has forged a new banking alliance with the Britannia Bank & Trust, a private financial services company based in the Bahamas. The move comes as Tether seeks stable banking relationships amidst a wave of traditional financial institutions distancing themselves from the crypto industry after the recent collapse of FTX.
According to a Bloomberg report on Tuesday citing people familiar with the matter, Tether has chosen to collaborate with the bank to enhance its US dollar transfer operations. In recent months, the stablecoin issuer has encouraged its users to direct funds to the bank’s account as part of its new processing approach.
Tether in Partnership with Three Bahamas Banks
The digital asset industry has experienced significant turbulence over the past year, with bankruptcies and controversies leading several banks to sever connections with cryptocurrency-related entities. Fears heightened after the collapse of three major banks in the United States, including Silicon Valley Bank (SVB), which has top crypto firms like Coinbase and Circle Financial as clients.
The collapse of these banks and the market uncertainty have made it increasingly challenging for crypto firms to secure reliable banking partners. However, companies such as Tether have been on the lookout for reputable banking partners. The firm has now partnered with Britannia Bank to facilitate its dollar transfer.
While the exact start date of Tether’s partnership with the bank remains undisclosed, the crypto-focused company has historically been discreet about its banking relationships.
However, Bloomberg named Deltec Bank and Capital Union Bank as its other banking partners for its stablecoin transfer. After terminating its alliance with the Noble Bank, the company confirmed its partnership with Deltec in 2018.
Both Deltec Bank and Capital Union Bank are based in the Bahamas. Now, the company has secured a new partnership with another Bahamas-based financial institution, further expanding its footprint outside the United States.
USDT Is Available on Fourteen Blockchains
Tether’s opacity regarding its banking relationships, financial structures, and balance sheets has drawn regulatory scrutiny and fueled fear, uncertainty, and doubt (FUD) within the industry. Despite these challenges, the company’s stablecoin USDT has consistently maintained its position as the dominant stablecoin in the market, boasting a remarkable 66.5% market share and a staggering market capitalization exceeding $82 billion.
The stablecoin remains the third largest crypto asset in the industry after Bitcoin (BTC) and Ethereum (ETH).
Tether’s USDT has expanded its reach across an impressive 14 blockchains with its latest integration to the Kava network, a move that underscores its commitment to accessible and versatile use. This expansion encompasses prominent networks such as Ethereum, Tron, Solana, Polygon, Avalanche, Algorand, and NEAR, among others, catering to a diverse user base.
At the forefront of this expansion, the Tron blockchain boasts the largest USDT presence, with an estimated value of around $33 billion in holdings as of last year. Following closely is the Ethereum protocol, where approximately 32.3 billion USDT is circulating, contributing to its prominence within the industry.
The company’s strategic approach to spreading its presence across various networks enhances its usability and aligns with its mission of providing users with seamless options for employing stablecoins. This diverse integration across multiple chains reflects the maturing nature of the digital asset sector and the growing demand for flexible solutions.