FTX Recovery Trust Set to Distribute $5 Billion to Creditors; Coinbase Sees Potential Market Upside
The FTX Recovery Trust is poised to begin dispersing over $5 billion in cash and stablecoins to creditors starting this Friday, with funds expected to reach recipients within three business days through BitGo and Kraken platforms.
This marks the second major repayment cycle since FTX’s collapse. The initial round, which kicked off in mid-February, returned about $7 billion to creditors with claims under $50,000 but had little impact on the broader crypto market.
Coinbase analysts suggest this new wave of repayments could stimulate positive market momentum. Unlike before, payouts will be made mainly in stablecoins, providing creditors with immediate liquidity on the blockchain, potentially encouraging reinvestment.
The outlook for crypto has brightened recently, aided by strong rallies in key assets and clearer regulatory signals. Institutional investors may feel increasingly confident utilizing these recovered funds, especially as U.S. lawmakers approach legislation that aims to define regulatory frameworks for digital assets.
