New banks for Bitfinex and Tether (USDT)

The criticised crypto exchange Bitfinex is relocating its banking operations to Hong Kong. The bagged “stable coin” Tether has also found a new bank in the Bahamas after the debacle over the Noble Bank.

As complaints from Bitfinex customers who could no longer make Fiat deposits increased, some saw a large-scale exit scam in progress. (False) reports of a supposed delisting of the stable coin by the Exchanges KuCoin and Binance did not help the USDT exchange rate any more than did the strengthening of the competition, for example in the form of the Gemini Dollar (GUSD).

Hong Kong and the Bahamas

Now both Tether and Bitfinex are said to have found new banks to handle their business. As The Block reports with reference to insider sources, Bitfinex is supposed to move to Hong Kong. There Bitfinex should maintain a private account with the bank PROSPERITY REVENUE MERCHANDISING LIMITED. Citibank is to act as an intermediary bank for transfers in US dollars to Bitfinex. PROSPERITY REVENUE MERCHANDISING LIMITED is owned in part by HSBC Holding. Bitfinex has not yet commented on the rumours, but an announcement by the company on October 16th has attracted attention: The Crypto Exchange has a “new, improved and increasingly robust system” for the transfer of Fiat currencies to Bitfinex.

Tether Limited, the company behind the stable coin, has also apparently transferred its banking operations from Noble Bank to the Bahamas. She has been a customer of Nassauer Deltec Bank for several weeks now. The bank is said to have already received initial enquiries from over-the-counter trading desks about the opening of accounts for USDT redemption. This is the result of insider statements made by The Block.

Tether price remains depressed

It is questionable whether the bank bill will help the image of the stable coin USDT. As long as Tether Limited does not have itself audited by every trick in the book, doubts remain as to whether the US dollar will fully cover Tether. So it is not surprising that these concerns are still reflected in the price of the stable coin. Currently, at 0.95 US dollars, the stable coin is still below the target value of one US dollar.

The recent price slump at Tether (USDT) has provided plenty of discussion material in the crypto community over the past few days. In view of the impending insolvency of Noble Bank, where the Bitfinex crypto exchange held most of its tether deposits, both Bitfinex and Tether had to look for a new partner bank. The fact that Tether and Bitfinex were customers of Noble Bank gave rise to speculation about the integrity of the crypto exchange. In addition, there were the entanglements of Bitfinex, Tether and Noble Bank, personified by Brock Peirce.