Tether collaborates with Britannia Bank to process USD transfers

Britannia Bank & Trust becomes the third bank in the Bahamas to partner with Tether, following Deltec and Capital Union.

Tether collaborates with Britannia Bank to process USD transfers

The world's largest stablecoin issuer, Tether, has added Britannia Bank & Trust to handle USD transfers on its platform.

While the exact start date of their partnership remains unclear, Bloomberg sources indicate that Tether has been directing clients to deposit funds into Britannia Bank accounts over the past few months.

Alongside Tether, U.S.-based crypto companies have been struggling to find new banking partners (as seen with Binance), amid increased U.S. regulatory scrutiny following last year's scandals and bankruptcies.

Historically, Tether's secrecy around its balance sheet and banking relationships has raised many questions regarding the organization's management of its $86 billion asset portfolio.

Overall, Tether's USDT continues to dominate the stablecoin market, especially as its competitor Circle's USDC loses market share and seeks expansion. However, due to banking partner limitations, Tether may face more challenges with withdrawals compared to Circle, as previously discussed by Coin68.

In the first four months of 2023, the USDT market capitalization has risen by over 20% to $80 billion, stabilizing thereafter between $80-82 billion. Tether's latest asset verification report indicates the company earned over $1 billion from investments in U.S. Treasury bonds.

Market capitalization of USDT over the past 12 months. Screenshot from CoinGecko taken at 08:45 AM on 30/08/2023