Tether Gained Access to U.S. Financial System Using Signature Bank: Bloomberg

Tether CTO Paolo Ardoino, in response to the article, denied the company has exposure to Signature Bank.

By Helene Braun

Apr 4, 2023 at 8:11 p.m. UTC

Updated Apr 4, 2023 at 8:23 p.m. UTC

Tether's logo (Nikhilesh De/CoinDesk)

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Helene Braun

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

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Tether, the world's biggest stablecoin issuer, used Signature Bank to transfer U.S. dollar funds from the U.S. to the Bahamas, Bloomberg reported.

Tether used Signature Bank's Signet payments platform to transfer U.S. clients' funds to Capital Union Bank, the issuer's banking partner in the Bahamas up until Signature Bank shut down in March and was taken over by regulators.

Tether Chief Technology Officer Paolo Ardoino, in response to the article, tweeted that Tether "didn't have any direct or indirect exposure to Signature."

Signet, which started in 2019 as a real-time payments platform and was an important technology for many institutional crypto clients, including exchanges Coinbase and Kraken, continues to operate even after regulators shut down the bank.

Edited by Nick Baker.

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Helene Braun

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Follow @HeleneBraunn on Twitter

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Helene Braun

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Follow @HeleneBraunn on Twitter