Stablecoin issuer Tether is accused of using collapsed Signature bank to access the U.S. banking system as it doesn’t have direct access to it.
Bloomberg reported, “Tether instructed crypto clients to pay for its stablecoins by sending dollars to its Bahamas-based banking partner Capital Union Bank Ltd. via Signature’s Signet payments platform,” as per people familiar with the situation.
The insiders noted that although the beginning of Tether’s arrangement with the collapsed platform is unknown, it was already in place when regulators seized Signature Bank last month.
Tether Chief Technology Officer (CTO) Paulo Ardoino slammed the Bloomberg report saying “As I stated on 12th of March 2023, Tether didn’t have any direct or indirect exposure to Signature. Good risk management where everyone failed.”
Tether’s platform enabled banks to identify risks and weaknesses that others had missed, ensuring their entities wouldn’t be affected by either direct or indirect exposure to Signature.
Compiled by Coinbold
