FTX’s $5B Stablecoin Repayment Could Fuel Market Activity, Say Coinbase Analysts

Unlike the previous round in February—where claimants received a mix of crypto and cash—this phase delivers payouts entirely in stablecoins, providing recipients immediate flexibility to reinvest. Disbursements are being facilitated through Kraken and BitGo, reaching both retail and institutional creditors over a three-day window.

Creditor groups are receiving different recovery percentages: Dotcom and international customers are set to receive 72%, unsecured creditors and digital asset lenders 61%, while U.S.-based customers get 54%. Those with smaller claims under $50,000, classified as “convenience claims,” are being reimbursed at 120% of their approved amount.

Coinbase researchers note that the nature and timing of this payout could lead to significant shifts in trading patterns. They point out that the earlier distribution round failed to lift market sentiment, with the COIN50 index finishing February down 16% amid macroeconomic uncertainty.

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But the mood has changed. Bitcoin has recently hit record highs, regulatory clarity in the U.S. is improving, and institutional investors are showing renewed interest in crypto treasuries. With claimants now receiving stablecoins, the expectation is that fewer barriers stand in the way of capital flowing back into crypto markets.

Analysts also emphasized that institutional entities, in particular, are positioned to redeploy funds swiftly—potentially boosting asset prices if enough liquidity returns to exchanges.

As one of the most complex insolvency processes in crypto history, the FTX unwind is still ongoing. But this round of payments, issued in a more investor-friendly form, could mark a turning point not just for creditors—but for the broader market as well.

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