TL;DR
- Tether says its EQIBank exposure is below 0.034% of total group assets, limiting the direct impact of the seizure.
- EQIBank says U.S. authorities seized about $89 million, roughly 80% of its monetary holdings, through accounts connected to payment processor Capstone.
- Tether’s latest reported balance sheet shows $187.75 billion in assets, suggesting the disclosed exposure could be below roughly $64 million.
Tether has confirmed that it maintains funds with EQIBank, a Dominica-licensed lender facing a major U.S. asset seizure, while emphasizing that its exposure remains extremely limited. The stablecoin issuer said assets held at the bank account for less than 0.034% of its total assets, keeping the incident relatively contained from the perspective of USDT reserves.
Tether Keeps EQIBank Exposure Limited
Tether’s disclosure follows reports that U.S. authorities seized assets connected to EQIBank through payment processor Capstone. According to court filings, Capstone held and moved funds through accounts at Wells Fargo and JPMorgan Chase. Prosecutors allege that the processor misrepresented its business activities to financial institutions. Tether said it had no knowledge of the conduct alleged by the U.S. Department of Justice.
The exact amount held by Tether at EQIBank remains undisclosed. However, Tether reported $187.75 billion in total assets at the end of June. Applying the 0.034% ceiling to that figure produces an upper-bound estimate of approximately $63.8 million, meaning the actual exposure could be substantially lower.
EQIBank has described the seizure as far more significant for its own balance sheet. The lender says approximately $89 million was seized, representing around 80% of its monetary holdings. The bank has warned that losing access to those funds could create liquidation risks as it challenges the seizure in U.S. federal court.
Why The Seizure Matters For Stablecoin Infrastructure
The case highlights a less visible part of stablecoin operations. Even when reserves consist largely of liquid assets, issuers still depend on banks and payment providers to handle deposits, transfers and redemptions. A problem at one intermediary can therefore temporarily restrict access to a portion of funds without necessarily threatening the stablecoin itself.
Tether’s June figures also provide additional balance-sheet context. The company reported approximately $183.64 billion in liabilities and a $4.11 billion excess reserve buffer. USDT remained close to its $1 target as the EQIBank situation developed, indicating no immediate market disruption tied to the disclosure.
The U.S. forfeiture case is still developing. Prosecutors are seeking roughly $84.2 million in property identified in court filings, while EQIBank uses the higher $89 million figure in describing its losses. A federal judge has already denied the bank’s initial request to recover the property, leaving the broader ownership dispute unresolved.
