After handling the thesis that the Puerto Rican bank Noble Bank represented Tether (USDT) central reserve entity, the BitMEX cryptocurrency exchange platform added new information to its hypothesis. Through a report, BitMEX stated that the local financial regulator had changed the name of Tether’s fund from “Cash in banks” to “Deposits, market investments and other balances that earn interest.”
Since its launch, the Tether (USDT) has generated controversy
Tether (USDT) is a cryptocurrency that, at least in theory, is backed by reserves in US Dollars. That is to say, Tether (USDT) tokens are issued with the support of fiat money with the intention of maintaining their fixed value. Its official website even has a transparency section that shows the community its financial balance of physical reserves and how many USDT are in circulation.
Between November 2016 and November 2017, Tether (USDT) market capitalization increased by 100%, drawing the attention of investors and cryptocurrency analysts. Some even began to suspect manipulation due to the close involvement of the Bitfinex cryptocurrency exchange platform.
BitMEX stated that Noble Bank of Puerto Rico protects Tether (USDT) funds
BitMEX prepared a study in which it is mentioned that cash deposits in Puerto Rico, through the International Financial Institutions (IFI), would be related to the growth of Tether (USDT).
Following our research on Tether and after financial information for the first quarter of 2018 was released, more evidence has been provided regarding the impact of Tether. In addition, a source close to Tether has confirmed that the speculation in our initial report is correct.
Another investigation, this time by the Bloomberg chain, reported in May that “three people with knowledge of the matter reported that Noble Bank International, based in San Juan, Puerto Rico, took over Bitfinex’s banking activities last year,” which would confirm the argument raised in principle by BitMEX.
The cryptocurrency exchange platform said that during the first quarter of 2018 bank deposits in the IFI, including Noble Bank, reached $3.5 billion, representing an increase of about 7% during the first three months of the year.
It is important to mention that BitMEX’s allegations are based on independent research, are not intended to be conclusive and are limited to hypotheses that have not been officially confirmed or rejected by Noble Bank.