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Tethe’s reported bank partner shares crypto strategy

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Tether reserves in Capital Union Bank, shares crypto strategy

Tether stablecoin’s reported bank partner, Capital Union, supports a wide range of digital assets. The Bahamas-based bank that reportledy holds a stipend of reserves by the Tether (USDT) issuer has been quite active in the crypto market. 

The bank issued its crypto trading and custody services to some of its professional clients. This is a part of Capital Union’s trading desk as stated by a Capital Union spokesperson. 

“We work with a few selected trading venues and liquidity providers and a handful of custodians and technology providers, which allows us to support a large variety of digital assets as part of our trading and custody services,” the firm’s representative said.

The bank’s crypto related services represent a small percentage of its main operation which focuses mainly on traditional wealth management and investment services. The spokesperson did not have much to elaborate on when asked about the cryptocurrencies on Capital Unions platform. 

“We do not have a directional view on crypto markets or on any specific coins but as a forward looking financial institution have chosen to enable our professional clients to trade in this new asset class should they desire to do so.”

The representative also reported that the development of Capital Union’s  “transactional blockchain related capabilities” has become a more significant focus as the bank expects a larger “disruption for the financial industry.”
Capital Union’s crypto-related operations were followed by a report on Monday that claimed Tether held reserves at the Capital Union Bank. The representative however, declined to confirm or deny the banks influence in Tether’s operations. The only information available to the public can be found in Capital Union’s annual reports.

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