Tether Ltd. has confirmed its exposure to EQIBank, a Dominica-licensed digital bank, stands at approximately $64 million following a U.S. asset seizure of about $89 million—roughly 80% of EQIBank’s monetary holdings. The company’s total assets, as reported in June, were $187.75 billion, with EQIBank exposure constituting less than 0.034% of its balance sheet. While Tether did not disclose the exact dollar figure, the estimate aligns with its stated ceiling of $64 million, underscoring counterparty risk in the broader fiat gateway network that supports stablecoin operations.
The seizure stems from allegations by U.S. prosecutors against Capstone, a U.S. payment processor, for allegedly misrepresenting its business practices to banks including Wells Fargo and JPMorgan Chase. EQIBank relied on Capstone to manage customer funds, facilitating USDT transactions through wire transfers. The seizure has placed EQIBank at risk of liquidation, though Tether’s exposure remains negligible. No immediate threat to USDT’s dollar peg or reserves has been identified, but the incident underscores vulnerabilities in the financial infrastructure supporting stablecoin issuance.
EQIBank’s seizure highlights the interconnected risks between offshore lenders, payment processors, and traditional financial institutions. While Tether’s exposure is minimal, the case serves as a reminder of the broader exposure stablecoin providers face when relying on third-party banking and payment services. The situation reflects ongoing scrutiny of stablecoin stability amid evolving regulatory and operational challenges in the digital asset space.
