Aiming to reassure, the issuer of the world’s largest stablecoin, Tether, has claimed it has no ties to U.S. bank Silvergate.
As a reminder, the troubling situation of one of the crypto industry’s leading banks, Silvergate Capital Corp, likely contributed to the fall of BTC and co. during trading hours in East Asia. Most of its major players quickly distanced themselves from Silvergate Bank, saying they would cease all cooperation with an entity that had previously been essential to their business model.
Several companies in the crypto sector have not failed to reassure their customers about this incident. On Thursday evening, Tether’s CTO Paolo Ardoino said his company had “no exposure” to the troubled crypto-friendly bank Silvergate.
Tether is trying to reassure as investor distrust of exchanges and stablecoins has risen sharply following bankruptcies and implosions in the ecosystem in 2022.
Last month, the company behind USDT published its first ever profit figures. The iFinex Group subsidiary announced a profit of $700 million in Q4 2022.
The price of its dollar-backed token, which is currently capitalized at over $70 billion, didn’t waver and held its peg following Bitcoin’s overnight price drop.