Tether, the stablecoin issuer behind USDT, has reportedly partnered with Bahamian private bank Britannia Bank & Trust to process USD transfers on its platform.

It is understood that Tether has instructed customers to wire funds into Britannia’s bank account over the past few months, according to Bloomberg reported on August 29, citing people familiar with the matter.

However, it is unclear when Tether’s banking relationship with Bank of Britannia began, but its other banking partners reportedly include Deltec Bank and Capital Union Bank.

U.S.-based cryptocurrency firms have increasingly had to look overseas for banking partners in recent months as U.S. regulators stepped up scrutiny following the November collapse of FTX.

Tether’s reluctance to publicly disclose the full extent of its balance sheet and banking relationships has also in the past fueled industry FUD (short for fear, uncertainty, and doubt) about how stablecoin issuers store their assets. $86 billion in assets.

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Tether’s USDT currently dominates the stablecoin market, with a market capitalization of $82.9 billion, accounting for 66.5% of the total market, according to to CoinGecko.

During the banking crisis involving Silvergate Bank, Signature Bank, and Silicon Valley Bank, USDT’s market capitalization rose more than 20% to $80 billion in the first four months of 2023, but has since stabilized at around $8-82 billion.

USDT market capitalization change over the past 12 months. Source: CoinGecko

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