Private markets saw significant regulatory and structural developments across digital assets, fintech, and traditional finance. Crypto firm Tether clarified minimal exposure to distressed EQIBank, while MoonPay announced a $60 million acquisition to build out tokenized securities infrastructure. Meanwhile, Indian fintech firm PB Fintech suffered a sharp market drop following proposed commission caps by local regulators.
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Tether Addresses Minimal EQIBank Exposure After $89M US Asset Seizure
Tether confirmed that its exposure to EQIBank amounts to less than 0.034 percent of its total following a U.S. asset seizure targeting the Dominica-licensed lender's payment processor. Based on Tether's reported $187.75 billion in group assets from its June report, the exposure equals roughly $64 million. U.S. prosecutors seized about $89 million tied to EQIBank, which were held through accounts at the Montana-based payment processor Capstone Ltd. The Department of Justice filed a civil forfeiture complaint seeking to permanently keep roughly $84.2 million, after alleging that Capstone was unlicensed and moved funds on behalf of Tether and Bitfinex. EQIBank warned that the seized funds represent about 80 percent of its monetary holdings and could force the lender into liquidation. A Tether spokesperson stated that the company had no knowledge of the conduct alleged against Capstone, and noted that the exposure poses no immediate threat to the USDT or its dollar peg. USDT traded at about $0.9997 on Friday afternoon.
MoonPay to Acquire North Capital in $60 Million All-Stock Deal
payments company MoonPay has agreed to acquire private-markets infrastructure platform North Investment Technology in an all-stock transaction valued at more than $60 million. The deal, announced on Wednesday, will fold North Capital and its registered entities into MoonPay as a wholly owned subsidiary once regulatory approvals are secured. North Capital operates SEC-registered broker-dealers, an alternative trading system known as PPEX, a transfer agent, and an investment adviser. The platform has supported more than $8.7 billion in primary and secondary transaction volume, with PPEX listing over 1,250 approved for secondary trading. MoonPay is executing the to bridge the gap between -based asset ownership and traditional regulatory frameworks required for tokenized real-world assets. The transaction extends a series of acquisitions by MoonPay this year, following earlier purchases of DFlow, Sodot, and Entendre. Both companies' boards have approved the agreement, though final completion remains subject to customary closing conditions and U.S. regulatory approvals.
US Lawmakers Urge Supreme Court to Hear Kalshi Event Trading Case
The Sixth Circuit Court of Appeals ruled Friday that prediction market provider Kalshi cannot treat its sports-related event contracts as federally regulated swaps. The unanimous decision from the three-judge panel means Ohio and Tennessee can apply their state gambling laws to the platform. Kalshi argued that its contracts fall under the exclusive jurisdiction of the Trading Commission, but the court found that the products do not depend on events associated with a potential financial, economic, or commercial consequence within the meaning of the statute. The ruling overturns a Tennessee federal district court decision that sided with Kalshi while reaffirming an Ohio federal district court ruling that favored state regulators. This appellate defeat follows a similar ruling last month from the Ninth Circuit Court of Appeals regarding Nevada. Meanwhile, the Third Circuit Court previously ruled that the CFTC holds exclusive jurisdiction over swaps, prompting an appeal to the U.S. Supreme Court that is also backed by an amicus brief from the National Council of Legislators from Gaming States. Kalshi has until November 9 to file its brief in response to the Supreme Court petition.
KEB Signs Underwriting Agreement for ACE Market IPO
Property developer KEB Bhd signed an agreement with M&A Securities Sdn Bhd on Friday for its planned initial public offering on the ACE Market of Bursa Malaysia. The offering comprises a public issue of 138.54 million new shares and an offer for sale of 88.24 million existing shares, bringing the total offering to 226.78 million shares. Under the agreement, M&A Securities will underwrite 66.18 million new shares for the public and eligible persons. Managing director Datuk Lim Kim Chong and executive director Vinson Lim are cashing out part of their existing stake through an offer for sale representing 10% of the enlarged issued share , though they will retain control of more than two-thirds of the company post-listing. KEB currently has two ongoing residential developments worth a combined gross development value of RM773.29 million, alongside four future projects valued at RM940.74 million and nearly 30 acres of land bank. Proceeds from the new shares will fund land , project working capital, bank borrowing repayments, and listing expenses. M&A Securities is acting as the principal adviser, sponsor, underwriter, and placement agent, while Eco Asia Capital Advisory Sdn Bhd serves as the financial adviser.
Lawsuit Alleges Fiserv Call Center Reactivated Stolen Cards
FiCare Federal Credit Union filed an emergency motion in U.S. District Court for the Middle District of Florida seeking to force Fiserv to hand over records regarding an alleged fraud scheme involving its cardholder services call center. The credit union alleges that criminals have been impersonating members and convincing call center employees to remove fraud restrictions from stolen debit and credit cards. FiCare reported at least 18 fraudulent transactions affecting its cardholders in August as a result of the bypass. According to the court filing, Fiserv relies on knowledge-based authentication such as Social Security numbers and printed card details rather than multifactor authentication like app-based prompts. FiCare contends that criminals armed with stolen physical cards and data obtained from previous breaches can easily answer those verification questions. The emergency motion follows a broader lawsuit filed in January concerning separate cybersecurity failures that compromised online banking accounts in 2024 and 2025. FiCare served Fiserv with 19 discovery requests on September 17 demanding call logs, training materials, and authentication results, but Fiserv declined to expedite responses. Five other credit unions, including Choice One Community Federal Credit Union and Galaxy Federal Credit Union, have reportedly experienced similar call-center exploitation. FiCare has asked the court to order a response within seven days, setting a target for a ruling by September 29. Absent a court order, Fiserv responses are not due until October 19. Fiserv stated that it has extensively invested in fighting fraud and intends to defend the company vigorously through the legal process.
Bernstein Comments on IRDAI Commission Cuts Impacting PB Fintech
PB Fintech lost more than a third of its market value in a single session after India's insurance regulator published a consultation paper proposing hard caps on distributor commissions. On September 23, the Insurance Regulatory and Development Authority of India released draft rules that sent the parent of Policybazaar falling from roughly ₹1,886 to as low as ₹1,207 a share, erasing more than ₹25,000 crore, or about $3 billion, in . Bernstein described the proposals as ugly and warned that PB Fintech's unravel under the new take-rate caps. The regulatory filing targets distribution costs that have outpaced the underlying insurance business, citing figures where motor insurance premiums grew about 34 percent between fiscal years 2023 and 2025 while commissions paid out jumped 259 percent. Retail health insurance premiums rose 53 percent over the same period while commissions surged 118 percent. The proposed structure introduces distinct product-by-product caps, reducing first-year health commissions to 15 percent and dropping new-vehicle third-party motor coverage commissions to zero. Jefferies estimates that a 10 percent cut to new business commission rates would translate into a 10 to 12 percent decline in for PB Fintech and Turtlemint. The draft also bans volume-linked sales incentives for bank staff and restricts banks from bundling policies with loans as a condition of lending. Insurers, brokers, and banks have until October 25 to submit public comments on the proposals before any final framework is established.
CFTC Allows US Commodity Firms to Invest in Tokenized Assets and Use Blockchain
The U.S. Trading Commission issued updated allowing registered firms to invest customer funds in tokenized traditional and use ledgers for regulatory recordkeeping. Under the updated framework, assets such as U.S. , corporate , and money-market fund shares can be held in tokenized form provided they preserve the legal and economic rights of the underlying instruments. Regulation 1.25 continues to govern , concentration limits, and maturity requirements for these investments. The guidance does not authorize direct customer-fund investments in cryptocurrencies like or Ether. Separately, the agency stated it would not object to regulated entities utilizing distributed ledger technology to maintain official on-chain records, provided the data meets standards for accessibility and reliability. Firms using public and permissionless blockchains must maintain systems to produce records during network disruptions. The policy updates follow the Senate's failure on September 15 to advance the Digital Asset Market Clarity Act.
Regulatory shifts across jurisdictions are reshaping fintech business models, from tokenized assets to broker commissions. Whether institutions can adapt to tightening state oversight while expanding blockchain infrastructure remains a key question for investors.
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