Tether confirms minimal EQIBank exposure following $89M US asset seizure
While Tether's stated ceiling places its maximum exposure under $64 million, the incident underscores lingering counterparty risks in fiat gateway networks.
Stablecoin issuer Tether said it has very little exposure to a lender seized by U.S. authorities on Thursday.
Tether said assets it holds at EQIBank represent less than 0.034% of its total assets, after the Dominica-licensed lender was caught up in a U.S. asset seizure that it said could force it into liquidation, according to reports by the Financial Times and The Information.
“Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice,” a Tether spokesperson told CoinDesk via email. The company said assets held at EQIBank were limited to “less than 0.034% of the assets of the group,” but did not disclose the exact dollar amount.
Based on Tether’s June report of $187.75 billion in group assets, the percentage the spokesperson said was at risk would put the EQIBank exposure at roughly $64 million.
EQIBank used Capstone, a U.S. payment processor, to hold funds and move customer money through accounts at Wells Fargo and JPMorgan Chase, according to court filings. U.S. prosecutors seized money from those Capstone accounts and filed a civil forfeiture case, alleging that Capstone misrepresented its business to banks.
EQIBank says roughly $89 million was seized, equal to about 80% of its monetary holdings, putting the lender at risk of liquidation, according to FT.
EQIBank provided banking services to Tether, including processing wire transfers linked to purchases and redemptions of USDT. Tether confirmed its limited exposure to EQIBank but did not disclose the dollar value, The Information reported.
The disclosure does not suggest an immediate threat to USDT’s reserves or dollar peg. But it highlights the counterparty risk in the network of banks that help stablecoin issuers process customer deposits and redemptions.
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Asanat Analysis — Why it matters
Tether's confirmation of minimal EQIBank exposure—capped below $64M against an $89M seizure—signals compartmentalized risk management in its fiat infrastructure. However, the incident exposes a recurring structural vulnerability: stablecoin issuers remain dependent on traditional finance rails where counterparty failures cascade unpredictably. Even 'minimal' exposure can trigger market uncertainty if perceived as a liability vector.
This echoes previous gateway friction (Silvergate, Signature) and highlights why stablecoin reserve transparency remains contentious. Tether's quick quantification suggests improved disclosure, yet the mere existence of such exposure contradicts the narrative of fully collateralized, low-risk assets. For the ecosystem, this reinforces demand for non-custodial settlement layers and multi-corridor fiat on/off-ramps—pressuring both stablecoin issuers and banking partners to reduce single-point-of-failure risks.