FTX to Distribute $5 Billion in Stablecoins to Creditors on May 30 2025

FTX is set to distribute over $5 billion in stablecoins to its creditors on May 30, 2025. This significant payout marks the second major distribution from the exchange, following its bankruptcy proceedings. The distribution is expected to impact the broader cryptocurrency ecosystem, potentially increasing liquidity for Bitcoin and altcoins. Creditors with claims exceeding $50,000 as of the record date, April 11, 2025, who have completed the necessary pre-distribution requirements, are eligible to receive these funds. Recipients have the option to convert the stablecoins to fiat currency or reinvest in cryptocurrencies. The distribution process is anticipated to be completed within one to three business days after May 30.

The influx of capital from this distribution could trigger increased activity in the altcoin market, potentially marking the beginning of a new altcoin season. Market participants are closely watching the developments, as the distribution represents nearly 2% of the entire stablecoin market. The funds will be distributed through BitGo and Kraken, ensuring a smooth and efficient process for creditors.

This distribution is a crucial step in the ongoing bankruptcy proceedings of FTX, which has been working to repay its creditors following its collapse. The move is expected to provide much-needed liquidity to the cryptocurrency market, which has been volatile in recent months. The distribution of stablecoins could lead to significant buying pressure on Bitcoin, as stablecoins are often used as a safe haven during market uncertainty. This could result in a surge in the price of Bitcoin and other cryptocurrencies, as investors look to capitalize on the increased liquidity.

While the broader sentiment remains unusually calm, analysts are warning that this event could become one of the biggest catalysts of the cycle. Many creditors, having waited years for their funds, are now likely to reinvest rather than cash out, especially with markets showing early signs of upward momentum. The altcoin space, which has been consolidating quietly in recent weeks, is now at a crucial tipping point. With stablecoin liquidity returning, traders anticipate a strong rebound in Ethereum and other top altcoins. Ethereum has started to reverse its downward trend against Bitcoin, which could indicate a stronger move coming. Indicators and on-chain activity are pointing to renewed interest in decentralized finance and AI-related projects.

Adding to this, the fixed-interest offering from Asymmetry Finance, supported by major institutional backers, adds credibility to altcoin investing. Tokens like Zeus, Athena, and Frack are also gaining attention for their creative narratives and emerging ecosystems. This renewed capital inflow may finally lift undervalued assets that have been trading sideways for months. Beyond the short-term liquidity injection, upcoming legislation like the Genius Act could reshape the stablecoin market. If passed, it would create a regulatory framework that could accelerate adoption. In parallel, AI tokens such as TOA, FAI, and Cookie are drawing investor attention. These tokens sit at the intersection of emerging technology and community-driven projects.