Coinbase Sees Potential Positive Effects from FTX Repayments on Market

FTX Recovery Trust to Disburse Over $5 Billion to Creditors, Potential Market Boost Seen by Coinbase

Starting Friday, the FTX Recovery Trust will begin distributing more than $5 billion in cash and stablecoins to creditors, with funds expected to be delivered within three business days via BitGo and Kraken.

This is the second significant repayment effort since FTX’s collapse. The initial phase, launched in February, returned roughly $7 billion to creditors with claims below $50,000. While that payout did not noticeably buoy crypto markets, current conditions may tell a different story.

According to a Coinbase report, this latest round could positively impact the crypto ecosystem. The payments will be made primarily in stablecoins, giving recipients immediate on-chain liquidity, which could increase the likelihood of reinvestment.

Investor sentiment has improved recently, bolstered by a rally in major cryptocurrencies and growing regulatory clarity. This optimism may encourage institutional players to deploy recovered funds more confidently, especially as Congress nears finalizing legislation to clarify the oversight of digital assets in the U.S.