FTX Recovery Trust Injects $5 Billion in Stablecoins into Digital Asset Markets

Coinbase analysts have highlighted that the $5 billion repayment round initiated by the FTX Recovery Trust could serve as a significant liquidity injection into digital asset markets. This repayment, which began on May 30, marks the second round of distributions to creditors affected by the crypto exchange’s collapse in 2022. The funds, totaling over $5 billion in stablecoins, are being disbursed via BitGo and Kraken over a three-day period. The recipients include a broad range of claimants, such as institutional lenders, US customers, digital asset lenders, and general unsecured creditors.

The recovery rates for this round vary by class. Institutional and international claimants are set to receive 72% of their claims, digital asset lenders and general unsecured creditors will recover 61%, and US-based FTX customers will receive 54%. Smaller claimants with approved claims under $50,000, classified as “convenience claims,” are set to recover 120% of the allowed amount. 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.

According to Coinbase’s research team, the method and timing of these repayments could have a meaningful market impact. 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. 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 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. 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. This repayment round could potentially influence trading behavior and asset flows as funds reach affected creditors this week.