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.