Stablecoin issuer Tether allegedly holds some of its reserves in a Bahamas-based bank.
stablecoin issuer Tether relies on a bank in the Bahamas to store some of its reserves, The Financial Times reported.
Banking institution Capital Union entered crypto research last year. The bank collaborated with Chainalysis to detect risky transactions and ensure compliance.
Tether has not made a statement about whether it has reserves in this Bahamas-based bank.
USDT issuer Tether, which has faced multiple bankruptcy charges in the past, remains silent about where it keeps its bank deposits.
The Commodity Futures Trading Commission fined Tether $41 million last year for lying about its stablecoin reserves. The company has not made a clear statement on how its stablecoin is backed.
Tether announced earlier this month that it increased its stake in US government bonds to 13%, while reducing its investment in risky commercial bonds to 17%.
The company’s reserves include gold as well as crypto, according to the quarterly report.
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