EddieJayonCrypto
30 May 25
Coinbase analysts report that the $5 billion repayment by the FTX Recovery Trust, distributed mainly in stablecoins starting May 30, could inject significant liquidity into digital asset markets and influence trading behaviors. This second round of repayments, spanning various creditor classes, offe...
Coinbase reports that the $5 billion repayment by the FTX Recovery Trust, distributed mainly in stablecoins starting May 30, could significantly inject liquidity into digital asset markets and influence trading behaviors.This second round of repayments targets a broad range of creditors, including institutional lenders, US customers, digital asset lenders, and unsecured creditors, with varying recovery rates: institutional and international claimants receive 72%, digital asset lenders and unsecured creditors 61%, US customers 54%, and smaller claimants under $50,000 recover 120% of the allowed amount.Unlike the February 2025 distribution, which was primarily in cash and crypto, this repayment phase uses stablecoins, offering recipients immediate reinvestment options that may accelerate capital flows into digital assets.Market conditions now appear more favorable with Bitcoin reaching new all-time highs, renewed institutional interest, and progress on regulatory clarity in the US, all of which suggest a stronger positive impact on asset prices compared to the muted response seen after the February round.The ongoing FTX recovery is noted as one of the most complex, multi-jurisdictional processes in crypto history, involving numerous claimants and counterparties. This significant repayment round could catalyze fresh capital inflows and reshape trading dynamics within the digital asset ecosystem.