A liquidation risk at EQIBank has impacted the holdings of the stablecoin issuer Tether. The offshore banking partner is facing potential collapse after the U.S. government seized its assets, leaving some of Tether's funds stuck at the institution. Tether stated that the exposed capital is limited and represents less than 0.034% of its total assets.

Tether has not provided a specific dollar amount for the unavailable funds or a timeline for their recovery. The company's reliance on this offshore partner for a small fraction of its reserves comes as it continues to manage the liquidity of its backing assets.