Coinbase analysts believe the $5 billion repayment round launched by FTX Recovery Trust could serve as a major injection of liquidity into the digital asset market, which could affect trading behavior and asset flows that reach affected creditors this week.
FTX Recovery Trust began distributing more than $5 billion in Stablecoins on May 30th and began repayment of the much-anticipated second round to creditors affected by Crypto Exchange’s 2022 collapse.
The funds will be paid over three days via Bitgo and Kraken and span a wide range of claimants, including institutional lenders, US clients, digital asset lenders and general unsecured creditors.
The recovery rate for this round varies by class, with institutional and international claimants receiving 72%, with digital asset lenders and general unsecured creditors recovering 61%, and US-based FTX customers receiving 54%.
Small claimants with approved claims of less than $50,000 are categorized as “Convenience Claims” and are set to collect 120% of the permitted amount.
According to a recent Coinbase report, this repayment represents the first large distribution of Stablecoins. This could provide greater stability to recipients compared to the February round, which includes a combination of cash and crypto.
Different market environments
According to the Coinbase research team, the methods and timing of these repayments can have meaningful market impacts.
Unlike the first round in February 2025, when around $7 billion was distributed primarily in cash and crypto, this phase consists of steady co-officials, offering recipients the option of instantly reinvestment.
Analysts suggest that this could catalyze new flows into digital assets. Especially among institutional claimants equipped to relocate capital immediately. They added that in the February round, they rarely raised digital asset prices because market sentiment was suppressed, leading to the Coin50 index lowering the month by 16%.
The report is believed to be caused by a lack of response to macroeconomic headwinds, including tariff-related uncertainty and limited crypto-specific catalysts.
However, I think the exchange will make the environment look more advantageous this time. Bitcoin has recently touched on the highest ever new interest in the Cryptocurrency Department, and US lawmakers have made meaningful advances in the clarity of regulations.
The decision to issue repayments with stubcoin could encourage greater reinvestment in the market, particularly from claimants of institutions that have less friction when relocating capital.
The FTX recovery process is one of the largest and most complicated in the history of crypto, including an entangled web of claims and counterparties across multiple jurisdictions.
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