Rumors surrounding the stablecoin known as Tether (USDT) have long speculated that the parent company does not exactly have the funds to back up the total tokens in the market. The continual uncertainty as to whether USDT was backed by cold cash caused the fake news in mid October that Binance was delisting the stablecoin from the platform. The rumors were fueled by the fact that the bank Tether was using at the time, was facing insolvency issues.
Two weeks after the fake news, and on the 1st of November, Tether Limited issued a statement that they had found a new banking partner in the Bahamas. The bank known as Deltec Bank and Trust Limited, went on to issue a statement stating that Tether’s account at the bank was $1,831,322,828.