Bitmex Research: New Data Points to Noble Being Tetherís Primary Reserve Bank

One of the biggest mysteries in the cryptocurrency world at the moment is the location of the vast USD reserves meant to be backing Tether. The stablecoin is used by many exchanges as a proxy for fiat in trading pairs which makes its solvency a critical issue at the heart of the entire ecosystem. Now, new research indicates that we might be getting closer to getting answers about the operation of USTD.

Tetherís Primary Reserve Bank Found?

Bitmex Research: New Data Points to Noble Being Tetherís Primary Reserve BankBitmex Research has released an update today to its deep investigation into Tether from last month. It shows that newly released data from Puerto Rico supports the speculation that Noble International Bank could be Tetherís primary reserve bank and that the island is a major hub for cryptocurrency business.

The Commissioner of Financial Institutions of Puerto Rico just released aggregate financial-system data for 2017. Bank deposits in the International Financial Entities category, which includes Noble Bank, were $3.3 billion, up 248% in the quarter ended December 2017. Total assets in the category were $3.8 billion, up 161% in the quarter.

The researchers explain that this ďextraordinary growth coincides with a large increase in value of cryptocurrency assets, which has likely resulted in large cash inflows into cryptocurrency-related banks. Over the same period, the value of Tether in issue has increased by 215% to $1.4 billion.Ē They thus conclude that: ďThis new data supports the thesis in our recent piece on Tether, in which we speculated that Noble Bank is Tetherís primary reserve bank.Ē

Noble International Bank

When it promoted itself to the FX and OTC industry, Noble Bank International (NBI) explained that: ďThe state-chartered bank, based in the US Territory of Puerto Rico, is regulated under US federal law. NBI is a non-fractional reserve bank. This means that NBI does not lend or re-hypothecate client assets; rather, assets are legally segregated in the name of the client and bankruptcy-remote, held at NBIís global custodian, BNY Mellon.Ē If this is also true under the same entity that serves Tether, it would suggest the stablecoin has direct exposure to US regulators.

As Bitmex Research pointed out in their previous report, there is also anecdotal evidence for a possible link between the bank and the stablecoin. The founder and CEO of Noble, John Betts, was behind the 2014 Sunlot Holdings move to take over and potentially rescue MtGox. And Sunlot was backed by Brock Pierce, one of the founders of Tether.

A representative of the bank only had this to say to news.bitcoin.com today: ďAs a matter of company policy, Noble doesnít disclose client information.Ē

19.03.2018 / 09:44 95
Research Suggests Tether Has Banking Relationship with Puerto Rico-based Noble Bank Research Suggests Tether Has Banking
New research suggests that cryptocurrency startup Tether ó creator of dollar-pegged stablecoin USDT ó has a banking relationship with Puerto Rican
Puerto Rico Creates Blockchain Advisory Council Reportedly To Filter Legitimate Projects Puerto Rico Creates Blockchain Advisory
The Puerto Rican Department of Economic Development and Commerce is creating a public and private sector based Blockchain advisory council. Puerto
Puerto Rico Aims to Attract Blockchain Startups With New Council Puerto Rico Aims to Attract Blockchain
Puerto Rico's government has created an advisory council aimed at spurring the development of blockchain businesses on the island. The move was
Anonymous Blogger Bitfinexed Lawyers Up For Alleged Legal Battle With Bitfinex Anonymous Blogger Bitfinexed Lawyers Up
The anonymous blogger Bitfinexed has reportedly hired a D.C. lawyer as part of the ongoing legal dispute between the blogger and the crypto exchange
Bittrex Adds Tether Competitor TrueUSD as Regulation Rumors Persist Bittrex Adds Tether Competitor TrueUSD
As the saying goes, donít keep all your stablecoins in one basket. Over-reliance on tethers could prove costly to an exchange such as Bittrex if U.S.
How TrueUSD Is Creating the Optimal Stablecoin for Crypto Markets How TrueUSD Is Creating the Optimal
Even though the technology has been discussed in tech circles and amongst insiders for years, it is only recently that cryptocurrencies have started
Comments (0)
Add a comment
Comment on