ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Tether Reports Relationship With Bahamas-Based Bank

By

Nathan

Graham

WriterETHNews.com

But something still doesn’t seem right.

In a November 1 blog post, stablecoin issuer Tether Limited announced it had established a relationship with a Bahamas-based bank and even provided a letter purportedly from the bank in an attempt to prove this relationship.

In October, Tether raised eyebrows when the price of the coin that is supposedly backed 1:1 by the US dollar dipped to under $0.92 before rebounding. Rumors swirled that Tether was having issues maintaining a solid relationship with a bank.

The lack of transparency surrounding Tether has also been a point of concern for many investors. In January of this year, Tether claimed it had procured the auditing services of Friedman LLP to "provide an interim analysis of [Tether's] cash position and our issued and outstanding tokens, as part of ongoing efforts to further professionalize the transparency mechanisms of Tether Limited."

However, this audit was canceled due to claims by Tether that the auditing firm was taking too long, and that its process was too invasive and detailed.

In June of this year, the embattled stablecoin provider attempted to once again entice investors by releasing a transparency report submitted by Washington, DC-based law firm Freeh Sporkin & Sullivan LLP (FSS). But because FSS did not use auditing standards, the report did little to assure skeptics that Tether had the financial reserves to back up its coin.

Tether's latest attempt to prove its liquidity and entice investors comes in the form of a blog post that states: "Tether Limited is pleased to confirm that it has established a banking relationship with Deltec Bank & Trust Limited ('Deltec'), a 72-year-old financial institution with headquarters in the Commonwealth of The Bahamas."

The post continues:

"The acceptance of Tether Limited as a client of Deltec came after their due diligence review of our company. This included, notably, an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies."

To provide further proof that Tether does, in fact, have the financial reserves to back up its stablecoin, Tether provided a link to a letter ostensibly written by the bank. But the letter itself is rasing some questions.

The letter is addressed to Tether Limited and has a Delta Bank and Trust Limited stamp at the bottom. The letter states that at the close of business on October 31 the value of Tether's bank account was $1,831,322,828. That number is roughly equivalent to the token's market cap around that time.

The signature at the bottom of the letter is nothing more than an illegible squiggle with no printed name underneath. It may not be enough to erase skepticism surrounding the company, especially because Deltec has thus far declined to confirm a relationship with Tether.

Nathan Graham

Nathan Graham lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Tether, stablecoin or other Ethereum technology news.