- According to The Block‘s sources, Tether is holding its reserves at Deltec Bank
- Over-the-counter trading desks have expressed interest in opening an account with Deltec Bank to redeem USDT directly
Tether is holding reserves at Bahamas-based Deltec Bank, several people familiar with the situation told The Block. The banking relationship between Tether, the company behind the stable coin of the same name, and Deltec Bank was struck in recent weeks. According to people familiar with the matter, some over-the-counter trading desks have expressed interest in opening an account with Deltec Bank in order redeem USDT directly.
Previously, Tether was banking with Puerto Rico’s Noble Bank but Noble Bank lost both Tether and Bitfinex as its clients. In recent days, Tether’s price has crashed to 18-month low amid worries about Tether’s solvency as well as banking difficulties. Establishing a new banking relationship should ease some pressure off the market. At press time, Tether is trading at at $0.95 on Kraken.
The Block has reached out to Tether’s media representatives and will update this post if they respond.