Uncovering the Truth: What Really Happened with Signature Bank and Tether?
Allegedly, Tether utilized Signature Bank's payment platform to gain access to the US banking system.
On April 4, citing anonymous sources, Bloomberg reported that Tether instructed its cryptocurrency clients to purchase its USDT stablecoins by transferring US dollars to Capital Union Bank in the Bahamas via Signature’s Signet payment platform.
Tether’s CTO, Paolo Ardoino, denied any exposure to Signature in response to Bloomberg’s report. Although Signature Bank’s future seemed uncertain after its recent closure, Coinbase confirmed that Signet, the bank’s 24/7 instant payment network for digital assets, was still operational.
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…— Paolo Ardoino 🍐 (@paoloardoino) April 4, 2023
Signet’s continued operation appears to have been made feasible by Signature Bridge Bank, a temporary organization created by the Federal Deposit Insurance Corporation (FDIC).
RELATED: Tether’s USDT Minting Goes Into Overdrive: A Boost for DeFi?
According to a source connected with Signature Bridge Bank, USDC issuer Circle’s CEO, Jeremy Allaire, had tweeted about halting Signet redemptions the evening before Signature Bridge Bank’s press release announcing its opening for business.
Some cryptocurrency community members have raised questions about regulators’ sudden closure of Signature Bank. During an episode of Unchained, Jim Bianco, founder of Bianco Research, discussed why he believes that New York regulators’ takeover of the bank is “suspicious.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
