In another step towards greater financial inclusivity, Tether, the issuer behind popular stablecoin USDT, has reportedly welcomed Britannia Bank & Trust, a private bank based in The Bahamas, to their platform in order to process dollar transfers. This recent partnership, according to sources cited by the Bloomberg report, has led to a series of transfers over the past months to Britannia’s account.
Tether’s association with Britannia Bank isn’t a standalone event, given the company’s other affiliations include Deltec Bank and Capital Union Bank. One view suggests an uptick in offshore banking ties as US-based crypto firms seek alternatives following increased scrutiny by regulators and the unexpected downfall of FTX in November.
Critics often point to Tether’s reserved nature regarding its balance sheet and banking relationships. Concerns have arisen over the assets purportedly backing the $86 billion held by Tether. Despite persistent doubts, USDT retains its dominant market stature, accounting for around 66.5% of the total stablecoin market.
The recent banking crisis involving Silvergate Bank, Signature Bank, and Silicon Valley Bank has added fuel to USDT’s value, inflating its market cap by over 20% to $80 billion. Although this rapid expansion has steadied around the $80-82 billion mark.
The power dynamic between cryptocurrency companies, regulators, and traditional banking entities encounters constant shifts, throwing light on their interconnectedness. As crypto firms explore new financial partnerships beyond their local genesis, it challenges traditional notions of fiscal networks and policy implementation. The questions then becomes, will this illicit closer scrutiny and regulation, or foster a broader acceptance of decentralised finance?
Greater adoption of digital currency alternatives promises opportunities in terms of global reach and barrier mitigation. However, this growth also illuminates unresolved aspects, such as regulatory conflicts or financial transparency. Through the tension of contrasts, Tether’s collaborations underline the crypto world’s desire and aptitude to embrace complexity and test the elasticity of global finance.