Coinbase analysts believe that the $5 billion repayment round initiated by the FTX Recovery Trust could function as a significant injection of liquidity into digital asset markets, potentially influencing trading behavior and asset flows as funds reach affected creditors this week.
The FTX Recovery Trust began distributing more than $5 billion in stablecoins on May 30, launching a long-awaited second round of repayments to creditors affected by the crypto exchange’s 2022 collapse.
The funds will be disbursed via BitGo and Kraken over a three-day period and span a broad range of claimants, including institutional lenders, US customers, digital asset lenders, and general unsecured creditors.
Recovery rates in this round vary by class, with institutional and international claimants receiving 72%, digital asset lenders and general unsecured creditors recovering 61%, and US-based FTX customers receiving 54%.
Smaller claimants with approved claims under $50,000, classified as “convenience claims,” are set to recover 120% of the allowed amount.
According to a recent Coinbase report, this repayment marks the first large-scale distribution of stablecoins, which may offer greater stability for recipients compared to the February round, which included a mix of cash and crypto.
Different market environment
According to Coinbase’s research team, the method and timing of these repayments could have a meaningful market impact.
Unlike the initial February 2025 round, when roughly $7 billion was distributed primarily in cash and crypto, this phase is denominated in stablecoins, giving recipients immediate reinvestment optionality.
Analysts suggest this could catalyze new flows into digital assets, especially among institutional claimants better equipped to redeploy capital quickly. They added that the February round did little to lift digital asset prices due to subdued market sentiment, which led to the COIN50 index closing the month down 16%.
The report attributed the lack of response to macroeconomic headwinds, including tariff-related uncertainty and limited crypto-specific catalysts.
However, the exchange believes that the environment appears more favorable this time. Bitcoin recently touched a new all-time high, institutional interest in crypto treasuries is resurging, and US lawmakers have made meaningful progress on regulatory clarity.
The decision to issue repayments in stablecoins may prompt greater reinvestment into the market, especially from institutional claimants who now face fewer frictions when reallocating capital.
The FTX recovery process remains one of the largest and most complex in crypto’s history, involving claims across multiple jurisdictions and a tangled web of counterparties.
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