Tether, the issuer of the well-known stablecoin, has just sealed a partnership with Britannia, a Bahamas-based private bank. This partnership makes Britannia the third Bahamian financial institution to partner with Tether, furthering the integration between the cryptocurrency industry and traditional finance.
Tether and Britannia Bank, an enigmatic partnership
Tether, the issuer of the USDT stablecoin, added Britannia Bank & Trust to its growing list of banking partners. Although the details remain unclear, knowledgeable sources have revealed that the Bahamas-based private bank has been responsible for processing dollar transfers on Tether’s platform for a few months.
Previous Tether banking relationships include, but are not limited to: Deltec Bank and Capital Union Bankalso based in offshore regions.
Why the choice of Offshore banks?
Cryptocurrency companies in the United States are under increasing pressure to seek banking partners outside the United States. This trend is particularly accentuated due to the strengthening of regulations and controls exercised by the American authorities, in particular following the unexpected collapse of FTX last November.
Tether, in particular, has raised questions in the industry due to his refusal to disclose the full extent of his track record. This opacity fuels doubts and concerns within the industry, especially regarding the way the company manages its assets, estimated at 86 billion dollars.
Dominance of Tether in the stablecoin market
Tether (USDT) remains the undisputed leader in the stablecoin market, with a current market cap of $82.36 billionwhich represents 66.5% of the total marketaccording to data from CoinMarketCap.
After impressive growth by more than 20% in the first four months of 2023, USDT capitalization appears to have stabilized around $80-82 billion. This increase mainly occurred in the context of the banking crisis involving Silvergate Bank, Signature Bank and Silicon Valley Bank.
This partnership with Britannia could therefore represent an additional step in consolidating Tether’s dominant position in the stablecoin market.
Source : Cointelegraph