Tether Says Its Exposure to EQIBank Is Below 0.034% of Group Assets
(7 days ago) · 1 source · Summarized by CryptoBipto
Tether has stated that its financial exposure to EQIBank represents less than 0.034% of the company's total group assets. The disclosure appears aimed at addressing concerns about counterparty risk related to the digital-asset-friendly bank.
WHY IT MATTERS
Tether issues USDT, a stablecoin — a type of cryptocurrency designed to maintain a steady value, usually pegged to the US dollar. For USDT to hold its value, Tether needs to hold enough real-world assets (like cash, bonds, or bank deposits) to back every token in circulation. Think of it like a bank needing enough money in the vault to cover what depositors are owed. When Tether says its exposure to a particular bank is very small, it is trying to show that even if something went wrong with that bank, it would barely affect the reserves backing USDT. This matters because confidence in those reserves is what keeps USDT stable, and USDT is widely used across the crypto ecosystem for trading and payments.
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