Tether has moved to contain concerns around its banking relationship with EQIBank after U.S. authorities seized assets connected to the bank's payment infrastructure. The stablecoin issuer says its exposure to EQIBank amounts to less than 0.034% of Tether's total group assets.
Based on Tether's latest reported asset base of roughly $187.75 billion, that percentage would imply a ceiling below approximately $64 million, though the company has not disclosed the actual figure held with the bank.
Payment Processor at Center of Legal Action
The legal action involves Capstone Limited, a payment processor used by EQIBank to move customer funds through U.S. banking channels. Federal authorities have sought forfeiture of assets held in accounts associated with Capstone, with court filings identifying roughly $83 million in bank accounts alongside approximately 1.18 million USDT from cryptocurrency addresses.
EQIBank has separately described the affected amount as roughly $89 million and warned that losing access to the funds could pressure its ability to continue operating.
Tether confirmed that EQIBank provided banking services connected with USDT purchases and redemptions. The company stated it had no knowledge of the conduct U.S. prosecutors have alleged against Capstone, and no finding has established that Tether participated in any alleged misconduct.
Stablecoin Infrastructure and Counterparty Risk
The situation highlights the traditional financial dependencies embedded in stablecoin infrastructure. While USDT moves across public blockchains, the reserves and fiat flows behind the token still interact with banks, custodians, payment processors, and other conventional financial institutions, creating counterparty risk even when the token itself operates normally.
Tether has spent years diversifying its reserve portfolio and banking relationships, with much of its asset base now concentrated in highly liquid instruments including U.S. Treasury bills. The company's stated EQIBank exposure is small relative to its overall balance sheet.
The episode underscores why the quality and legal position of banking partners remain important to stablecoin issuers. Although a token can settle globally in seconds, the dollars behind it must still move through a financial system where accounts can be frozen, intermediaries can fail, and courts can seize assets.
