In the latest news centered around dollar-pegged stablecoins on our DC Forecasts crypto news site, we have Tether Limited, the organization behind the USD-pegged cryptocurrency stablecoin Tether (USDT) – and its recent partnership with a small financial institution based out of the Bahamas.
According to the newly established relationship, the cryptocurrency firm which is known for its opaque operations, has broken out from standard practice on Thursday and publicly announced that it has formed a banking partnership with Deltec Bank, a 72-year-old financial institution located in Nassau.
We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited https://t.co/LSn64soUsC . Balance confirmation at 2018-10-31 attached.
— Tether (@Tether_to) November 1, 2018
As you can see from the official announcement which was shared on Tether’s website, the company states that Deltec had only opened the account after a several month review that included full evaluation of whether the company could maintain the USDT token’s $1.00 peg. We all know that this peg has declined in recent weeks, even though the company redeemed more than $1 billion worth of the token since the beginning of October.
The announcement further reads:
“The acceptance of Tether Limited as a client of Deltec came after their due diligence review of our company. This included, notably, an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies. This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.”
Tether also published a letter from Deltec which confirms that the firm – accused by some of operating a fractional reserve – is holding $1.83 billion at the bank which is more than enough to cover the assets backing the 1.78 billion in outstanding USDT.
“We hereby confirm that, as at the close of business on October 31, 2018, the portfolio cash value of your account with our bank was US$1,831,322,828.
“This letter is provided without any liability, however arising, on the part of Deltec Bank & Trust Limited, its officers, directors, employees and shareholders, and is solely based on the information that is currently in our possession.”
Tether’s relationship with Deltec had first been reported by The Block. Previousl, the company was said to be banking at the Puerto Rico-based Noble Bank, which is now for sale following the departure of the stablecoin and other large crypto industry clients.
Line Messenger And Its Plans To Launch An Exchange For 80 Million Users
"LINE has built its reputation on providing a great social experience for our users, and now we intend to bring that know-how to the world of digital tokens with our BITBOX exchange. With BITBOX, we intend to have an exchange that is easier to use, while also ensuring we provide extremely strong levels of security."As he also mentioned, BitMax will use the exact same technology that is used in BITBOX. His statement made the latest cryptocurrency news now that Line is expected to obtain a license and operate BitMax in Japan in the near term. The launch of a crypto exchange by Line Messenger, which is a major tech giant in Japan, definitely restores a lot of confidence - especially by local investors and users following the high profile security breaches and the names associated with them (Coincheck and Zaif). Native exchanges may definitely be the future of a new crypto revolution - and Line Messenger could definitely be pioneering it.
Amazon Pay VP Shows That There Are No Current Plans For Crypto
“It’s fresh, it’s speculative; at Amazon, we don’t really deal with the speculative, in the now,” the Amazon Pay VP said.Facebook continues to cause a stir in cryptocurrency, financial and government circles after the first publicity material around Libra went live. Billed as a network that is designed to allow users to send money like messages or pictures on social media, this scheme has attracted a lot of talks because of its technical setup and roadmap. Some lawmakers have already gone as far as to request the company halt development altogether. The altcoin news also show that there is a potential alternative to fiat money and central banks. Many commentators have suggested that some governments such as Russia, will seek to block Facebook and any other product supporting Libra. As of recently, the United States Senate Banking Committee revealed that it will hold a dedicated hearing on the cryptocurrency next month, as we reported in our coming altcoin news. As the Amazon Pay VP noted, the company has so far steered clear of many cryptocurrency implementation despite the various rumors in recent years. Depending on the future evolvement of the space, the retail giant may reconsidered the Libra-style crypto option in the mid to long run. The cryptocurrency community honestly hopes that this will be the case - mostly because everyone expects a decent rival to Facebook with its cryptocurrency project.
“At Amazon, we deal with data a lot, so I’ll be happy to have that conversation two or three years from now,” Gaulthier finalized, delaying the topic about cryptocurrencies once again.
Altcoins Suffer And Remain Sideways, Bitcoin Goes Higher
Libra Testnet Peeks At The Crypto Future That Facebook Is Building
“Libra is built on a secure, scalable, and reliable blockchain. It is backed by a reserve of assets designed to give it intrinsic value and is governed by the independent Libra Association tasked with evolving the ecosystem.”With this, developers will be able to write programs in the Move language which can run on the Libra blockchain. As the Libra testnet also notes, anything that you can imagine would be possible - from opening a savings account to opening a merchant account to maybe even some kind of lottery system, the latest cryptocurrency news show. It is evident that Facebook plans to build an economy outside of the regular government view - and a digital currency which could open many doors around the world. From another perspective, it is definitely not absurd for governments to consider the Libra testnet and accept the coin for certain services. As the Libra whitepaper shows:
“For too many, parts of the financial system look like telecommunication networks pre-internet. Twenty years ago, the average price to send a text message in Europe was 16 cents per message.3 Now everyone with a smartphone can communicate across the world for free with a basic data plan. Back then, telecommunications prices were high but uniform; whereas today, access to financial services is limited or restricted for those who need it most — those impacted by cost, reliability, and the ability to seamlessly send money.”The big question that everyone has is the following... Are we on the verge of a new era of peer-to-peer commerce?
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- Amazon Pay VP Shows That There Are No Current Plans For Crypto
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