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FTX Repayments May Have Positive Market Impact: Coinbase
Creditor payments via BitGo and Kraken are expected within three business days amid shifting market conditions.
Updated May 30, 2025, 7:16 p.m. Published May 30, 2025, 7:03 p.m.
What to know:
- The FTX Recovery Trust is expected to return $5 billion to creditors starting on Friday, with payments going out over the weekend.
- The first repayment round in February sent $7 billion to smaller claimants.
- The market mood is more optimistic now, potentially amplifying repayment impact.
The FTX Recovery Trust will begin distributing over $5 billion in cash and stablecoins to creditors starting on Friday, with funds expected to land in accounts within the next three business days via BitGo and Kraken.
And there’s a chance this wave of repayments will help lift the crypto market, analysts at Coinbase wrote in a report on Friday.
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It’s the second major round of repayments following the exchange’s collapse. The first, which began on Feb. 18, returned roughly $7 billion to creditors with claims under $50,000. That did little to lift broader crypto markets at the time, which remained under pressure from macro headwinds.
This latest wave of distributions comes as investor sentiment has shifted, the analysts said. Payments will arrive in stablecoins, offering recipients immediate on-chain liquidity, instead of cash and crypto. That could influence whether the funds are reinvested.
There’s also a broader sense of optimism in crypto markets, thanks in part to a rally in major assets and increased political clarity around regulation. Institutional players, in particular, may feel more comfortable acting on incoming funds, especially as Congress moves closer to passing legislation that would define the roles of U.S. regulators overseeing digital assets.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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