The latter, based in the Bahamas is said to have conducted a thorough due-diligence review (including shareholders’ background checks, compliance, policies and procedures analysis) before sealing the deal, considering the amount of controversial publicity in the crypto space related to Tether.
According to the announcement, the review had a strong focus on Tether’s ability to maintain the USD-peg at any moment and the company’s treasury management policies.
Tether, with all of the tokens fully backed by US dollars, faced mixed reviews when allegations surfaced that they have parted ways with Noble bank – their previous financial partner.
The currency’s exchange, Bitfinex, was also the subject of rumors, which led to a significant drop in the circulation of USDT in markets.
Although this caused a momentous loss of traders’ trust, evidently didn’t affect the coin in the long run. USDT has generally been able to recover and is trading at around $ 0.998 on November 2nd.
This comes as good news for Tether’s community, because the dynamic market of stablecoins expanded in a matter of days.
A growing number of USD-backed competitor coins appeared on all major exchanges throughout October and the tendency is promising to continue in the same direction.