Whoa! Tether (USDT) Keeps Its Reserve Funds In An Unknown Bank In The Bahamas

Tether is said to have kept its reserves in an unknown bank. (Unsplash)

JAKARTA – Tether (USDT) is reported to have deposited its funds in an unknown bank located in the Bahamas, as reported by The Financial Times. Tether is the largest stablecoin issuer among other stablecoins by market capitalization.

Banking institute Capital Union conducted research on cryptocurrencies in 2021. In April, Capital Union partnered with leading blockchain analytics firm Chainalysis to ensure compliance and detect risky transactions using USDT.

Reporting from U.Today, Tether has not provided an official statement regarding the deposit of funds in a small bank located in the Bahamas. Tether, who has faced numerous bankruptcy charges in the past, has remained tight-lipped about where he keeps his bank deposits.

Last year, the Commodity Futures Trading Commission sanctioned Tether with a $41 million fine for lying about its stablecoin reserve information. Tether did not properly disclose that the USDT stablecoin is partially backed by non-fiat assets.

Earlier this month, the company announced that it had reduced its exposure to commercial securities to just 17 percent while increasing its holdings in US government bonds to 13 percent.

Tether also has reserves in crypto and precious metals, according to its quarterly report. Currently, the market capitalization of Tether is 72 billion US dollars.