Tether Now Expands Business In Bahamas Through Britannia Bank & Trust

Key Points:

• Tether joins forces with the Bahamas’ Britannia Bank & Trust for USD transfers.
• The company’s covert banking approach raises asset storage concerns.
• Its offshore move reflects the crypto industry’s response to tightening regulations.

In a significant move, Tether, the largest stablecoin issuer globally, has partnered with Britannia Bank & Trust, a well-established private bank headquartered in the Bahamas, according to a Bloomberg report.

The collaboration aims to streamline dollar transfers within Tether’s platform and marks the third banking partnership for the stablecoin issuer in the Bahamas, succeeding Deltec and Capital Union.

Sources familiar with the matter reveal that the stablecoin issuer has discreetly advised its clients to direct funds to Britannia Bank’s account over the past few months. While the precise commencement date of this banking relationship remains undisclosed, it underscores Tether’s commitment to fortify its financial infrastructure.

Amid the escalating regulatory scrutiny faced by U.S.-based cryptocurrency firms, many have sought refuge in offshore banking partners.

Tether’s decision to maintain secrecy regarding its balance sheet and banking associations has sparked industry speculation and unease about the storage of its substantial $86 billion in assets.

Critics argue that Tether’s lack of transparency poses a significant challenge, as clarity is paramount to establishing trust within the crypto ecosystem.

This concern becomes even more relevant given Tether’s pivotal role in supporting a substantial portion of the crypto market, with its USDT token being a cornerstone of trading activities.

The trend of seeking jurisdictions with favorable regulatory climates isn’t confined to crypto firms; even traditional financial institutions have succumbed to similar pressures.

Notably, other U.S.-based crypto enterprises, including Binance, have encountered hurdles in securing new banking partners amid heightened regulatory vigilance.

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