Tether taps private bank to process dollar transfers: Bloomberg

Stablecoins • August 29, 2023, 5:46PM EDT

Published 1 minute earlier on

Quick Take

Stablecoin issuer Tether is using privately-held Britannia Bank & Trust to process dollar transfers, according to Bloomberg, which cites anonymous sources.

Tether, issuer of the world's largest stablecoin, has started using the privately held bank Britannia Bank & Trust, Bloomberg News reported, citing anonymous sources.

Bloomberg didn't say when the banking relationship began but, citing sources, said Tether has in recent months told clients to transfer money to Britannia’s bank account. Clients wishing to pay for Tether stablecoins have for quite some time faced dwindling options.

Crypto firms of any size have encountered mounting difficulty securing U.S. banking partners since a wave a scandal and bankruptcies spurred heightened regulatory scrutiny.

Historically, Tether, which is also privately-held, has been secretive about its banking relationships, according to Bloomberg.

With Circle's USDC stablecoin losing market share, Tether's USDT token has become the clear leader among digital currencies pegged to the dollar.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.