Tether held some reserves at the Bahamas Bank Capital Union

tether held part of his reserves at a small bank on the Bahamas called Capital Union, said people familiar with the matter and gave further information about how the group manages the $ 73 billion stable coin that underpins the cryptoma market.

The StableCoin emittent has generally refused to disclose where exactly he holds the assets that are known as the USdt behind his token of the same name, and found that as a private company, he is not obliged to disclose information about his financial partners.

tether has been examined again in the past few weeks after USDT was briefly traded at only 95 cents, significantly below the $ 1 bond that tries to maintain it. Since then, investors have repaid more than $ 10 billion from Tether who argued that the drains have proven that it has plenty of liquidity.

The USDT token from Tether, introduced in 2014, is often used on the markets for cryptocurrencies to trade with Bitcoin and other important digital assets. Usdt is the largest in circulation in circulation according to the market value.

tether is registered on the British maiden islands and promises to redeem one to one with dollars if necessary.

The company's ability to keep this promise ultimately depends on the liquidity and security of its reserves, which according to its own statements include bank deposits, US state bonds, commercial paper, precious metals and cryptocurrencies.

Capital Union said "the only information that we make publicly accessible through our company are included in the annual report" on his website, while Tether did not comment on his relationship with the bank.

Tether previously announced that it has been maintaining a banking relationship with another bank on the Bahamas, Deltec Bank & Trust, whose chairman Jean Chalopin shaped the Cartoon Gadget in the 1980s.

In the past, Tether fought for access to the traditional financial system. Last year, the US regulatory authorities said that Tether had previously misled users through his reserves, sometimes because it had used bank accounts in the name of his General Counsel and his sister exchange Bitfinex. Tether and Bitfinex agreed to pay $ 60 million for two comparisons in which they neither encores or denied misconduct.

In an interview with the Financial Times this month, Paolo Ardoinino, Chief Technology Officer from Tether, said that the most liquid reserves, cash deposits, were held on the Bahamas at two banks. He added that Tether had "strong banking relationships" with "more than seven or eight banks all over the world".

People familiar with the matter said that Capital Union was another bank on the Bahamas that Tether used. The boutique bank was founded in 2013 and had a fortune of USD 1 billion at the end of 2020, last year for which public accounts are available. The chairman of Capital Union, Lonnie Howell, was previously co -founder of EFG International, a listed Swiss bank.

It is unclear how much of Tether's reserves were kept exactly via Capital Union or when the relationship began. In an interview with Bloomberg in 2021, Chalopin said that Deltec kept only about a quarter of Tether's reserves, at that time about $ 15 billion, in the form of cash and low -risk bonds.

Capital Union began publishing research reports on crypto in June 2021. Later this year, a manager for digital assets and other business areas, according to the LinkedIn profile of the person, said that in this job they "created and implemented and implemented in this job" and "Reduce the processing time and error for digital assets with Excel".

In April, Capital Union announced that it started to use CHAINALYSIS Compliance software, a large blockchain data company.