Deltec Bank Shares Cryptic Message of Tether’s Reserves
The Tether company claims to have $1.8 billion after a serious restriction of Tether in circulation.
The Tether company has forged a bank relationship with Deltec Bank, supposedly using it to store the dollars that back each USDT token. However, the bank’s statement on the presence of funds sounds vague. Additionally, the USDT on-site wallet is still in withdrawal mode only, meaning there is no way to deposit USDT and withdraw USD.
Deltec bank itself has issued a cryptic document with a message suggesting the $1.8 billion sum is based on limited information:
The bank statement was seen as very minimal evidence that the Tether company was in possession of the funds, and was viewed with skepticism by the crypto community. The Deltec partnership was rumored, without an official statement, in mid-October, while Bitfinex and the wholly-owned Tether, Inc. were seeking banking solutions. Bitfinex has introduced a per-case deposit system, suggesting a solution seeking to obfuscate the fact that the banks used are, in fact, helping a crypto exchange without full knowledge.
What is even more curious, in theory, the Tether company should have much greater funds, above $2.7 billion. However, as the Tether treasury withdrew coins from the market, Tether also decreased the reported number regarding the dollar funds. There is no knowing if the corresponding $1.2 billion, supposedly tied to the 1.2 billion retired USDT, are present anywhere.
USDT tokens trade around $0.99, much closer to the dollar peg, on the Kraken free market. However, this market is extremely thin. The Tether market still sees volumes of around the equivalent of $2.9 billion in 24 hours, and has, paradoxically, expanded its influence over all crypto trades. Now, USDT pairs take up 21.23% of all trading, helping create small-scale rallies in some altcoins. However, the influence of USDT over Bitcoin (BTC) is waning, with only 41% of all trades made against the dollar-pegged coin. At one point, as much as 60% of volumes depended on the USDT pairings.