The $USDT plumbing just got exposed.
Everyone thinks stablecoins are decentralized. They're not. Tether moves on-chain but the actual dollars? Still flowing through banks.
The EQIBank x Capstone case reveals the hidden rails:
→ Offshore banks in Dominica
→ U.S. payment intermediaries
→ Major legacy banks bridging fiat to crypto
This is the fragile infrastructure propping up the world's largest stablecoin. One regulatory squeeze and the whole thing locks up.
You're not holding decentralized money. You're holding IOUs backed by offshore banking relationships.
The case is a reminder: know what you're holding. $USDT isn't Bitcoin. It's a claim on dollars moving through the same system crypto was supposed to replace.
Everyone thinks stablecoins are decentralized. They're not. Tether moves on-chain but the actual dollars? Still flowing through banks.
The EQIBank x Capstone case reveals the hidden rails:
→ Offshore banks in Dominica
→ U.S. payment intermediaries
→ Major legacy banks bridging fiat to crypto
This is the fragile infrastructure propping up the world's largest stablecoin. One regulatory squeeze and the whole thing locks up.
You're not holding decentralized money. You're holding IOUs backed by offshore banking relationships.
The case is a reminder: know what you're holding. $USDT isn't Bitcoin. It's a claim on dollars moving through the same system crypto was supposed to replace.
