Tether Uses Signet to Transfer US Dollar Funds to Bahamas Banking Partner.
According to recent reports, Tether, the issuer of USDT stablecoin, used Signet, the payment platform of Signature Bank, to transfer US dollar funds to its banking partner, Capital Union Bank, in the Bahamas.
The transfer continued until Signature Bank’s closure in March 2022 and transfer to regulatory control.
However, Tether CTO Paolo Ardoino has denied any direct or indirect impact on Signature. Despite the bank’s closure, the Signet platform remains operational and continues to serve many institutional crypto clients such as Coinbase and Kraken.
Tether currently has approximately $1.6 billion in excess reserves to support its stablecoin.
Signature Bank, which began to deal with cryptocurrencies in 2018, had more than $110 billion in assets before its collapse, and cryptocurrencies accounted for about 23% of all deposits.