Deltec Reveals Investing Customer’s Funds in Bitcoin
Bahamas-based Tether’ bank Deltec has been investing customers’ funds in Bitcoin for some time to yield high profitability. This was disclosed by the bank’s Chief Investment Officer Hugo Rogers through its annual year-in-review video that was released on Thursday.
However, the statement raised eyebrows among the public who couldn’t help but wondered if the dollar-pegged USDT stablecoin— which is largely backed and supported by fiat or cash — is now supported by Bitcoin.
Investing in Bitcoin is expected to produce more Impressive Results
In his speech, Hugo Roger said that the Deltec bank purchased Bitcoin worth $9,300 in the just concluded year, and it was able to make a great profit from the investment. According to him, the strategic move worked out well throughout 2020. The bank is expected to continue with the practices as he expected the plan to produce better results this year because printing presses keep running hot.
The video, which surfaced first on Twitter, has been one of the most-watched contents on the social media platform since it was discovered. Cryptocurrency enthusiasts are equally spending some time watching the video before analyzing what it means and how customers and Stablecoin users should respond to it.
Meanwhile, Tether general counsel Stuart Hoegner was the first to share his thoughts on the well-watched video. Through his spokesperson, he reiterated that the latest development wouldn’t change the business relationship between Deltec Bank and stablecoin. He confirmed that the financial institution remains stablecoin issuer’s bank.
Deltec Bank Held Close To $1.8 Billion In 2018
Going back to memory lane, Deltec bank became a subject of discussion in the crypto space three years ago when Tether showed the public a letter that was written by the bank claiming it held over $1.8 billion. Though the letter didn’t have any signature on it, one of Deltec’s executives subsequently confirmed that the publication was accurate and authentic.
In 2019, the Office of the New York Attorney General disclosed that Bitfinex, who shares the same ownership and executives with the Tether firm, lost up to $1 billion following the decision by the US regulatory body to freeze and seize all the funds in its payment processors’ bank accounts.
To render financial help to its ʼsister’ company, Tether decided to borrow Bitfinex some amount of money from its reserves for its upkeep. Both companies have been legally stopped from seeking a loan from themselves as part of their plans to regulate the amount of USDT in circulation.
However, the injunction is set to end in a few days as both companies would be free to engage themselves in new loan activities. It is believed that the circulation of USDT plays a huge role in determining the price of Bitcoin, which has been on the increase for some months before its unimpressive run in recent days. Having reached an all-time high of $41,940 on Sunday, the digital asset surprisingly dropped to $32,260 the next business day.