Tether Claims Small Exposure to EQIBank, Flags Counterparty Risk Behind Stablecoin

The largest stablecoin issuer, Tether, has confirmed that its exposure to EQIBank is minimal after the Dominican-licensed bank became entangled in an asset seizure by United States authorities worth around US$89 million. In an official statement to CoinDesk, a Tether spokesperson said the funds placed at EQIBank amount to no more than 0.034% of the group's total assets. Based on a June 2025 financial report recording group assets of US$187.75 billion, that portion equals about US$64 million.

EQIBank was previously known as one of the banks serving Tether, including processing wire transfers related to the purchase and redemption of USDT. However, the bank used the services of Capstone, a US-based payment processor, to hold funds and move customer money through accounts at Wells Fargo and JPMorgan Chase. US prosecutors seized funds from Capstone's accounts and filed a civil forfeiture suit, accusing Capstone of falsifying its business profile to major banks.

According to a Financial Times report, about US$89 million was seized from EQIBank, equal to 80% of the bank's total monetary holdings. This condition puts EQIBank at risk of liquidation. Tether stressed it had no knowledge of the alleged violations committed by Capstone as accused by the US Department of Justice. Nevertheless, Tether was reluctant to disclose the exact value of the funds potentially affected.

This disclosure does not immediately threaten USDT's reserves or its dollar peg. However, the incident highlights counterparty risk in the banking network that helps stablecoin issuers process customer deposits and redemptions. As stablecoins increasingly enter the regular financial system, reliance on smaller and less supervised intermediary banks becomes a vulnerable point that could trigger systemic shocks.

"Tether has no knowledge of the Capstone conduct alleged by the Department of Justice," said a Tether spokesperson, as quoted by CoinDesk.

For the Indonesian market, this event serves as a reminder that stablecoin adoption—especially USDT, which is popular among local traders—is inseparable from operational and legal risks in foreign jurisdictions. Bank Indonesia and OJK have regulated crypto assets as commodities, but oversight of the banking supply chain supporting stablecoins remains limited. Investors and crypto businesses in the country need to watch how regulators respond to this development, especially if EQIBank's liquidation actually occurs.

Going forward, the question is not only whether Tether can absorb this shock, but how transparent the stablecoin industry is in managing funds at partner banks. Regulators in Asia Pacific, including Indonesia, are being pushed to strengthen due diligence frameworks and counterparty risk reporting so that market trust remains intact.