Tether forms partnership with Bahamas-based Britannia Bank amid regulatory scrutiny

TL;DR Breakdown

  • Tether has reportedly formed a partnership with Britannia Bank & Trust, a private bank in the Bahamas, making it the third offshore bank to collaborate with the stablecoin issuer.
  • The partnership is seen as a strategic move for USDT, especially as U.S.-based crypto firms face heightened regulatory scrutiny, forcing them to seek banking relationships outside the United States.

Description

In a move that could potentially reshape the stablecoin landscape, Tether, the company behind the world’s leading stablecoin USDT, has reportedly entered into a partnership with Britannia Bank & Trust, a private bank based in the Bahamas. This new alliance makes Britannia the third Bahamas-based bank to collaborate with Tether, following Deltec Bank and Capital … Read more

In a move that could potentially reshape the stablecoin landscape, Tether, the company behind the world’s leading stablecoin USDT, has reportedly entered into a partnership with Britannia Bank & Trust, a private bank based in the Bahamas. This new alliance makes Britannia the third Bahamas-based bank to collaborate with Tether, following Deltec Bank and Capital Union Bank. The news comes at a time when U.S.-based cryptocurrency firms are facing increasing regulatory scrutiny, forcing them to look for banking partners outside the United States.

According to a report by Bloomberg on August 29, the company has been directing its clients to transfer money to Britannia Bank’s accounts over the past few months. While the exact timeline of this banking relationship remains unclear, the partnership is seen as a strategic move for Tether, which has been under the spotlight for its lack of transparency regarding its balance sheet and banking relationships.

The regulatory landscape: Why offshore partnerships are crucial

The partnership with Britannia Bank comes at a critical juncture for Tether and the broader cryptocurrency industry. The collapse of FTX in November led to heightened scrutiny from U.S. regulators, making it increasingly challenging for crypto firms to maintain domestic banking relationships. As a result, companies like Tether are looking offshore to secure more stable and less scrutinized banking partnerships.

Tether’s reluctance to fully disclose its balance sheet and banking relationships has been a point of contention within the industry, fueling FUD (Fear, Uncertainty, and Doubt). Critics argue that the lack of transparency could pose risks to the financial system, especially given Tether’s significant market capitalization. As of now, Tether’s USDT has a market cap of $82.9 billion, making up 66.5% of the total stablecoin market, according to data from CoinGecko.

The partnership with Britannia Bank could be a step towards mitigating some of these concerns. By diversifying its banking relationships, Tether may be aiming to build a more resilient financial infrastructure that can withstand regulatory pressures. The Bahamas, with its more lenient regulatory environment, offers a conducive atmosphere for crypto businesses to operate, making it an attractive destination for companies like Tether.

Tether’s dominance in the stablecoin arena

Tether’s USDT has been a dominant force in the stablecoin market, and its market cap has seen significant growth in 2023. Over the first four months of the year, USDT’s market cap surged by over 20% to reach $80 billion. This rally occurred amid a banking crisis involving Silvergate Bank, Signature Bank, and Silicon Valley Bank, further emphasizing the stablecoin’s resilience.

The market cap has since stabilized, hovering around the $80-82 billion range. The partnership with Britannia Bank could potentially offer Tether a more stable and secure platform for dollar transfers, thereby reinforcing its market position. As the stablecoin market continues to evolve, the company’s strategic partnerships could play a pivotal role in shaping the industry’s future.

Conclusion

The partnership between Tether and Britannia Bank marks a significant milestone in the stablecoin issuer’s efforts to diversify its banking relationships and bolster its financial infrastructure. While the move comes amid increasing regulatory scrutiny and industry FUD, it also highlights Tether’s proactive approach to navigating the complex financial landscape. As the company continues to dominate the stablecoin market, its banking partnerships will be closely watched by both regulators and industry stakeholders. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Tether forms partnership with Bahamas-based Britannia Bank amid regulatory scrutiny

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年8月30日 17:24
Next 2023年8月30日 18:17

Related articles

  • Hedera (HBAR) Forms Strategic Partnership with Banking and Mastercard

    TL;DR Breakdown A pioneering move that connects Hedera with conventional banking and the Mastercard Network, preparing users for access to Mastercard Payment Gateway Services and future digital asset solutions. The integration enables frictionless international trade, safe payments, and a wider range of financial services, reflecting Hedera’s commitment to using blockchain technology to advance democratic principles. The HBAR token has seen a positive market response, with a jump of more than 3% since last week. Description In a groundbreaking move that promises to reshape the landscape of digital finance, Hedera (HBAR) has announced a strategic partnership with FreshSupplyCoAu to integrate with the Continuity API. This integration will enable seamless connections to banks and the Mastercard Network, bridging the gap between decentralized blockchain technology and conventional financial infrastructure. Contents hide 1 FreshSupplyCoAu’s … Read more In a groundbreaking move that promises to reshape the landscape of digital finance, Hedera (HBAR) has announced a strategic partnership with FreshSupplyCoAu to integrate with the Continuity API. This integration will enable seamless connections to banks and the Mastercard Network, bridging the gap between decentralized blockchain technology…

    Article 2023年8月5日
  • Tornado Cash founders face money laundering charges

    TL;DR Breakdown Tornado Cash founders, Semenov and Storm, face legal issues with U.S. authorities. Charges include money laundering and operating an unlicensed money business. Third co-founder, Pertsev, arrested in the Netherlands. Description The crypto landscape just faced a whirlwind of events as founders of the Tornado Cash crypto mixer find themselves neck-deep in legal troubles. With the backdrop of an ever-evolving cryptocurrency ecosystem, such events paint a vivid picture of the challenges and growing pains in the industry. The Charges Laid Bare Roman Semenov, a name now … Read more The crypto landscape just faced a whirlwind of events as founders of the Tornado Cash crypto mixer find themselves neck-deep in legal troubles. With the backdrop of an ever-evolving cryptocurrency ecosystem, such events paint a vivid picture of the challenges and growing pains in the industry. The Charges Laid Bare Roman Semenov, a name now infamous in the crypto community, landed himself on the U.S. Treasury’s Office of Foreign Assets Control (OFAC) notorious list, the Specially Designated Nationals and Blocked Persons (SDN). But he isn’t the only one. His partner…

    Article 2023年8月24日
  • Argentina opens investigation into Worldcoin amid the growing regulatory scrutiny

    TL;DR Breakdown Argentina follows Kenya’s, UK’s, France’s, and Germany’s footsteps and opens up investigations into Worldcoin. Previously, Vitalik Buterin of Ethereum stated that some privacy and ethical concerns expressed about the project could be valid. Sam Altman, one of the co-founders of the Worldcoin project, has stated publicly that its goal is to register 2 billion people. That plan is not going so well. ZachXBT, a prominent on-chain investigator, accuses Worldcoin of exploiting individuals from developing nations. Description The government of Argentina has informed Worldcoin that it has launched an investigation into its data collection activities in the country. The Public Information Access Agency (AAIP), the country’s data regulator, sent a letter to the Worldcoin Foundation requesting information on how the organization handles the personal information of Wordcoin users. Argentina has had it … Read more The government of Argentina has informed Worldcoin that it has launched an investigation into its data collection activities in the country. The Public Information Access Agency (AAIP), the country’s data regulator, sent a letter to the Worldcoin Foundation requesting information on how the organization…

    Article 2023年8月11日
  • Dogecoin surges as Elon Musk’s Twitter activity sparks interest

    TL;DR Breakdown Dogecoin has experienced a small surge following several activities of Elon Musk on Twitter. Controversy surrounds the future of the asset in the crypto market. Description The digital asset market may have been relatively quiet, but one cryptocurrency that stands out with a remarkable surge is Dogecoin. The surge can be attributed to Twitter CEO Elon Musk. Presently, DOGE has surged 1.65% in the past 24 hours, trading at $0.07. Over the past week, it has seen a 19% increase, making … Read more The digital asset market may have been relatively quiet, but one cryptocurrency that stands out with a remarkable surge is Dogecoin. The surge can be attributed to Twitter CEO Elon Musk. Presently, DOGE has surged 1.65% in the past 24 hours, trading at $0.07. Over the past week, it has seen a 19% increase, making it one of the best-performing coins in the market. Dogecoin sees a 9% rise in 24 hours Created as a joke by a group of engineers in 2013, Dogecoin has unexpectedly gained significant popularity, currently ranking as the eighth-largest…

    Article 2023年7月27日
  • Unbanked no more: Bahamas launches crypto remittance platform

    TL;DR Breakdown Island Pay introduces “CiNKO” digital wallet, powered by Circle’s USDC stablecoin, for remittances in Latin America and the Caribbean. The innovative wallet aims to enhance financial inclusion by providing seamless transactions for both banked and unbanked individuals in over 30 countries. The push for stablecoins and decentralized finance protocols in the region is set to revolutionize the remittance landscape, offering potential cost savings of up to 80% compared to traditional methods. Description Island Pay, a Bahamas-based fintech company, has stepped forward with an innovative solution to address the high costs and challenges associated with traditional remittances. However, the company recently unveiled its digital wallet, “CiNKO,” tailored for users in Latin America and the Caribbean. CiNKO will utilize Circle’s USDC stablecoin as its primary currency, offering an alternative … Read more Island Pay, a Bahamas-based fintech company, has stepped forward with an innovative solution to address the high costs and challenges associated with traditional remittances. However, the company recently unveiled its digital wallet, “CiNKO,” tailored for users in Latin America and the Caribbean. CiNKO will utilize Circle’s USDC stablecoin…

    Article 2023年7月26日
TOP