Tether partners with Britannia, a private bank located in the Bahamas: Report

Tether, the issuer of the stablecoin USDT, has reportedly incorporated Britannia Bank & Trust, a private banking institution located in The Bahamas, to facilitate dollar transactions on its platform.

According to a report by Bloomberg on August 29, Tether has directed clients to transfer funds to Britannia’s bank account in recent months, as per sources familiar with the situation.

While the exact start date of Tether’s banking relationship with Britannia Bank remains unclear, the company is also known to have other banking partners, including Deltec Bank and Capital Union Bank.

In light of heightened scrutiny from U.S. regulators following the unexpected collapse of FTX in November, cryptocurrency firms based in the United States have increasingly sought banking partners outside the country.

Tether’s reluctance to publicly reveal the complete details of its balance sheet and banking affiliations has previously contributed to industry FUD (fear, uncertainty, and doubt) regarding how the stablecoin issuer manages its $86 billion in assets.

Related: US Fed intensifies oversight of banks’ engagement with crypto firms

Tether’s USDT currently leads the stablecoin sector, with a market capitalization of $82.9 billion, accounting for 66.5% of the overall market, as reported by CoinGecko.

USDT’s market cap surged over 20% to $80 billion during the first four months of 2023, amidst the banking crisis involving Silvergate Bank, Signature Bank, and Silicon Valley Bank, but has since stabilized around the $80-82 billion range.

USDT's change in market cap over the last 12 months. Source: CoinGecko

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