Counterparty Capital acquires distressed community banks and transforms them into high-margin sponsor banks serving the $1+ trillion stablecoin and fintech ecosystem.
Get StartedPurchase accounting reset generates 150-200 bps annual NIM accretion on underwater bond portfolios.
GENIUS Act (effective Jan 2027) creates insurmountable barriers for non-bank competitors.
Fee-based BaaS model with zero credit risk and 40-50x valuation uplift potential.
Counterparty Capital specializes in acquiring community banks burdened by underwater bond portfolios at 0.65–0.90x tangible book value. The current interest rate environment has created significant unrealized losses in high-quality securities, suppressing profitability and creating acquisition opportunities at distressed valuations.
Through ASC 805 purchase accounting, we reset underwater securities to fair market value on Day 1. The markdown discount is recognized as mechanical interest income over the bond's remaining life, typically adding $2.5–3.0M annually in non-cash earnings—sufficient to fund the cost of capital and support balance sheet growth.
We pivot acquired institutions from credit-heavy community banks to capital-light sponsor banks serving fintechs and stablecoin issuers. Revenue streams include:
The GENIUS Act (S.1582), effective January 1, 2027, permits only three categories to issue payment stablecoins: subsidiaries of insured depository institutions, federally-qualified nonbank issuers, and state-qualified issuers (capped at $10B). Bank subsidiaries capture 100% of reserve yields due to federal prohibition on paying interest to token holders.
| Metric | Traditional Community Bank | Counterparty Sponsor Bank |
|---|---|---|
| Primary Focus | Relationship-based lending | Fintech & Stablecoin infrastructure |
| Core Revenue | Net Interest Spread (Loans) | Fee income & Yield on reserves |
| Credit Risk | High (Cyclical) | Minimal to Zero |
| ROAA Target | 0.3% – 0.8% | 2.0% – 2.5% |
| Valuation Multiple | 1.2x – 1.5x TBV | 10x – 15x Earnings |
Signed July 18, 2025, the GENIUS Act creates the first coherent federal framework for stablecoin regulation. Key provisions include 1:1 reserve requirements (cash, T-bills 0–90 days, or reverse repos), monthly public attestations, and the "No Yield Rule" that prohibits paying interest to token holders—ensuring all reserve yields flow to the issuer and sponsor bank.
The Digital Asset Market Clarity Act differentiates digital commodities from investment contracts, providing legal certainty that payment stablecoins are neither securities nor commodities but a distinct federally regulated asset class. This eliminates SEC/CFTC jurisdictional ambiguity and "regulation by enforcement."
Unlike offshore or non-bank competitors, our bank subsidiary status provides Federal Reserve Master Account access and Fed Discount Window liquidity backstops—a critical security feature for stablecoin holders during market stress.
Full federal authorization, Discount Window access, highest regulatory clarity.
Capped at $10B issuance, limited jurisdictional clarity, no Fed backstop.
Ambiguous legal status, prohibited in U.S. post-GENIUS Act, high enforcement risk.
A $213M bank trading at 0.65x TBV with a $127M underwater securities portfolio can generate:
The global stablecoin market exceeded $270 billion in circulation as of January 2026, with a total addressable market exceeding $1 trillion. A single $500M stablecoin program generates approximately $2.5M in annual high-margin revenue.
| Issuer | Token | Market Cap | Status |
|---|---|---|---|
| Tether | USDT | $185.5B | Offshore, non-compliant |
| Circle | USDC | $64.0B | Regulated, compliant |
| Maker | USDS | $6.6B | Crypto-collateralized |
| Ethena | USDe | $6.6B | Delta-neutral, high risk |
| Ripple | RLUSD | $1.3B | Regulated, compliant |
Under GENIUS Act restrictions, offshore-first models like Tether become untenable for U.S. domestic flows after January 2027. This creates structural advantages for compliant issuers dependent on regulated bank infrastructure.
Entrepreneur and angel investor with 25+ years of experience in large-scale timber operations and specialized investment banking for income REITs. Co-founder of Launchpad GVL tech incubator/accelerator. Bridges traditional asset management with the fintech ecosystem.
Veteran entrepreneur and finance professional with extensive experience in venture building and creative strategy. VP of Finance & Operations at BandwagonFanClub, CEO of WLW LLC. B.S. in Biochemistry from UNC Chapel Hill. Brings disciplined operational and financial acumen.
Specialized financial advisor and risk management expert based in Greenville, SC. Deep expertise from United Community Bank in wealth preservation, estate planning, and corporate fund management. Holds B.S. from Indiana University and AIF certification. Ensures regulatory and compliance excellence.
We seek institutional investors, family offices, and high-net-worth individuals seeking differentiated exposure to the intersection of distressed banking assets and digital asset infrastructure. Our thesis combines:
Whether you're a bank shareholder exploring strategic alternatives, a fintech seeking compliant sponsor bank infrastructure, or an institutional investor evaluating the opportunity—we invite you to connect.
Counterparty Capital | Greenville, SC | LinkedIn