Tether Partners With Bahamas-Based Britannia Bank For Dollar Transfer Processing

Tether, the company behind the widely-used stablecoin USDT, has reportedly partnered with Britannia Bank & Trust to process dollar transfers.

According to Bloomberg, it is unclear when the relationship between the firm and the privately-held bank operating in the Bahamas has started. Allegedly, over the last few months, Tether advised its users to send money to the partner bank’s account.

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At the moment, there are no official statements or comments from either party, but Bloomberg cited people familiar with the matter.

This is not Tether’s first foray into offshore banking partnerships, with speculations that such moves are impacted by the increased scrutiny of the U.S. government agencies.

All the way back in 2018, the company started using the services of another Bahamas-based bank, Deltec Bank & Trust. Deltec, a 72-year-old financial institution, reportedly performed a due diligence review of Tether and assessed the company’s ability to maintain the USD-peg, adding that Deltec reviews the company on an ongoing basis.

A year ago, in June 2022, one more bank from the Bahamas partnered with Tether. Capital Union has allegedly been actively involved in the cryptocurrency industry, and Tether held some of its reserves at the bank.

Capital Union operates according to the DARE Act, a legislation that regulates the issuance, sale, and trade of digital assets. According to the bank:

As a locally regulated bank, this allows us to offer crypto-related services to our clients, which are financial institutions, financial intermediaries and professional investors.

And Tether reportedly takes advantage of Capital Union’s acceptance of crypto.

Additionally, Tether is looking toward Europe as a possible expansion. In June, the company struck a deal with Georgia's government to develop critical Bitcoin and P2P infrastructure in the country.