Tether says EQIBank exposure is under 0.034% of assets after $89 million US seizure
Tether puts its EQIBank exposure below 0.034% of assets
Tether, the company that issues the USDT stablecoin, said it holds very little money at EQIBank, a Dominica-licensed bank that was caught up in a US asset seizure. A stablecoin is a crypto token designed to hold a steady value, usually tied to the US dollar.
A Tether spokesperson told CoinDesk that the assets it holds at EQIBank amount to "less than 0.034% of the assets of the group." The company did not give an exact dollar figure.
The spokesperson also said Tether had no knowledge of the conduct by Capstone that the Department of Justice has alleged. The statement was reported first by the Financial Times and The Information.
Key numbers from the disclosure
- Tether said its EQIBank holdings are under 0.034% of its total group assets.
- Based on Tether's June report of $187.75 billion in group assets, that percentage works out to roughly $64 million. This is a calculation by CoinDesk, not a figure Tether confirmed.
- EQIBank says about $89 million was seized, equal to about 80% of its monetary holdings, according to the Financial Times. The bank said the seizure could push it into liquidation.
- EQIBank handled wire transfers linked to purchases and redemptions of USDT.
What Tether said about the Department of Justice case
In its email to CoinDesk, Tether said: "Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice." The company described its EQIBank assets only as a share of group assets, without naming a dollar amount.
According to court filings, EQIBank used Capstone, a US payment processor, to hold funds and move customer money through accounts at Wells Fargo and JPMorgan Chase. US prosecutors seized money from those Capstone accounts and filed a civil forfeiture case, alleging that Capstone misrepresented its business to banks.
What the Financial Times and The Information reported
The Financial Times reported that EQIBank said about $89 million was seized, or about 80% of its monetary holdings, leaving the lender at risk of liquidation. EQIBank is described as a Dominica-licensed offshore digital bank.
The Information reported that EQIBank provided banking services to Tether, including processing wire transfers tied to USDT purchases and redemptions, and that Tether confirmed its limited exposure without disclosing a dollar value.
What is confirmed
Tether's own statement that its EQIBank assets are less than 0.034% of group assets is confirmed by the company. EQIBank's status as a Dominica-licensed bank and its role in processing USDT-related wire transfers are reported by the outlets above. The seizure of Capstone accounts and the civil forfeiture filing come from court filings described in the reporting.
CoinDesk said the disclosure does not suggest an immediate threat to USDT's reserves or its dollar peg. That is CoinDesk's assessment, not a statement from Tether.
What is still unclear
The exact dollar amount Tether holds at EQIBank has not been disclosed, so the roughly $64 million figure is an estimate based on the company's June asset report. It is also not confirmed whether EQIBank will be liquidated or how the civil forfeiture case will end.
Why the counterparty risk matters
Stablecoin issuers rely on a network of banks to handle customer deposits and redemptions. The incident highlights what CoinDesk described as counterparty risk in that network — the possibility that a bank partner runs into trouble, even when the issuer's own reserves are not directly threatened.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.