Will Bitfinex and Tether’s new banking partners bring back stability?
Bitfinex and Tether have recently announced new banking partnerships in Hong Kong and the Bahamas. Previously, two companies that reportedly shared the same management were Noble Bank’s customers, who are currently on sale for financial distress.
Bitfinex says banking details are commercially sensitive and confidential
According to The Block, Bitfinex found a new banking partner in Hong Kong. Internal sources have claimed that the crypto money exchange opened an account with Citibank’s agent, Bank of Communications, for deposits with US dollars. The interesting thing is that HSBC has a share in the bank. Recent speculations include developments in a banking relationship between the Bitfinex stock exchange and HSBC.
Tether finds his banking partner in the Bahamas
A different article published in The Block mentions that Tether has established a banking partnership with Deltec Bank in the Bahamas. Anonymous sources have shown that both sides have reached an agreement in recent weeks, and several OTC trading tables want to open an account in the bank. At present, Tether seems to have more than $ 2.2 billion USDT tokens in circulation despite the market value of $ 2 billion. Under the assumption that each USDT token is fixed at $ 1, Tether can be considered to hold $ 2.2 billion in bank reserves.
Bitfinex and Tether continue
The new banking partnerships announced by both companies seem to be a serious development for the market as a whole. As you know recently, Bitfinex had to stop the fiat shooting process.
This movement led traders to sell stable coins in exchange for Bitcoin, Ether, Bitcoin Cash, and Litecoin, resulting in a melting of hundreds of millions of USDT from the circulation.
The big sales generated a price increase of $ 7,000 by Bitcoin. Currently, USDT is trading at $ 0.97, according to Coinmarketcap. New banking partnerships are expected to provide some stability in the Bitfinex and Tether transactions.