Tether confirms minimal EQIBank exposure following $89M US asset seizure
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Tether confirmed that its exposure to EQIBank, a Dominica-licensed offshore digital bank whose assets were mostly seized by U.S. authorities, accounts for less than 0.034% of its total assets. The seizure involved approximately $89 million, about 80% of EQIBank’s monetary holdings, and stems from actions against a U.S. payment processor linked to the bank. Tether stated this exposure poses no immediate threat to the USDT stablecoin's reserves or dollar peg.
Why it matters
The seizure emphasizes the counterparty risks that stablecoin issuers like Tether face due to their reliance on third-party banks and payment processors. While Tether’s limited exposure reduces immediate concern, this event highlights vulnerabilities within the financial network supporting stablecoins. The source does not elaborate further on broader market or regulatory impacts.
Key context
EQIBank’s U.S. payment processor, Capstone, had funds seized by the Department of Justice due to alleged misrepresentation of business activities to banks. The seized funds affected accounts at major banks including Wells Fargo and JPMorgan Chase. EQIBank’s potential liquidation follows this significant asset loss, raising questions about the stability of banking partners for digital asset firms. Tether uses EQIBank services to facilitate USDT purchases and redemptions.
Key numbers and entities
Tether’s total reported assets as of June 2026 were $187.75 billion. EQIBank’s exposure equates to roughly $64 million (less than 0.034% of Tether’s assets). U.S. authorities seized approximately $89 million from EQIBank, representing 80% of the bank’s monetary assets. Key entities involved include Tether, EQIBank, Capstone, the U.S. Department of Justice, Wells Fargo, and JPMorgan Chase.
What remains unclear
The precise dollar amount of Tether’s holdings with EQIBank remains undisclosed. Details on how this event might affect Tether’s operational relationships or liquidity measures are not provided. The broader implications for stablecoin regulation or market stability beyond immediate counterparty risk are not discussed.