• Tether used Signature Bank to access the US financial system
• Tether allegedly sent money to its Bahamas-based banking partner through Signature’s Signet payments platform.
• Paolo Ardoino, the chief technology officer at Tether, tweeted that his company “didn’t have any direct or indirect exposure to Signature.”
Tether Used Signature Bank for US Financial System Access
According to Bloomberg, Tether, the world’s largest stablecoin issuer, utilized Signature Bank to transfer funds from the United States to its banking partner in the Bahamas. Money was routed through the Bank’s Signet system. People with knowledge of incident claim that Tether paid crypto users for its stablecoins.
Signature Bank’s Signet Platform
Tether transferred funds from U.S. clients to Capital Union Bank via Signature’s Signet payments platform before it went out of business in March and was taken over by regulators. Signet is a real-time payments network that launched in 2019 and serves many institutional clients in the crypto space such as Coinbase and Kraken.
Paolo Ardoino Refutes Allegations
In response to this news story, Paolo Ardoino, chief technology officer of Tether, tweeted that his company „didn’t have any direct or indirect exposure to Signature.“ The Wall Street Journal has recently come under fire from Tether for publishing and disseminating inaccurate information about the firm and its operations.
Tether Resilience During Market Turmoil
The resilience of Tether has been demonstrated during times of market turmoil like LUNA and FTX crises by successfully processing over $20 billion redemptions throughout highs and lows of markets. This showcases their ability to keep operating as their customers want it too despite negative media coverage on them from legacy media outlets like Wall Street Journal .
Conclusion
Tether used Signature Bank’s Signet payment platform for transferring funds from U.S clients to Capital Union bank in Bahamas before it went out of business due to regulators taking it over in March 2023. Although there was speculation that they had some sort of direct or indirect exposure with signature ,Paolo Ardoino denied these allegations while also criticizing Wall Street Journal for writing inaccurate news articles about them . Despite all this ,they have still managed to demonstrate their resilience during market turmoils by successfully processing over $20 billion redemptions throughout highs and lows which shows their commitment towards providing service what their customers desire .