A legal dispute in London’s High Court revolves around deposits made by stablecoin issuer Tether with a financial services firm totaling more than $1 billion, as the Financial Times revealed on Tuesday.
The report, which referenced documents submitted to the High Court, stated that Tether deposited the money with a division of investment bank Britannia Financial.
A lawsuit has been filed by Britannia Financial against Arbitral International, a company based in the British Virgin Islands, alleging that Britannia neglected to pay the entire amount for a Bahamas brokerage that it purchased from Arbitral in June 2021.
Based on an agreement between the two companies, Arbitral claims it is entitled to additional funds from assets generated by the business in the year after the sale. Britannia asserts in the report that Tether deposited the funds with Britannia Global Markets, a subsidiary, and that, as a result, the transaction has nothing to do with the brokerage that Britannia purchased from Arbitral.
The largest stablecoin in the world, USDT from Tether, offers cryptocurrency users protection from the volatility that frequently afflicts cryptocurrencies. The majority of Tether’s $86.4 billion in assets are held in US Treasury bonds. Secured loans totaling $5.2 billion are also included in the assets.