FTX Appoints Payoneer as Third Asset Distributor
- FTX appoints Payoneer to distribute assets post-bankruptcy.
- Additional options now available for creditors.
- Second phase distribution to involve multiple service providers.
FTX Recovery Trust has named Payoneer as its third distributor for creditor asset distributions, complementing existing providers BitGo and Kraken. This move is part of FTX’s post-bankruptcy recovery efforts.
The integration of Payoneer is crucial as it enhances the payout avenues for FTX creditors post-bankruptcy, potentially affecting digital asset liquidity and market dynamics positively.
FTX’s asset distribution hinges on the expertise of the FTX Recovery Trust with contributions from Sullivan & Cromwell LLP and others. Payoneer’s inclusion marks a shift towards safer fiat-focused avenues in the asset distribution process.
“These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals.”
— John J. Ray III, Plan Administrator, FTX Recovery Trust
The service expansion aims to facilitate over $5 billion in customer distributions. BitGo and Kraken continue as the main digital asset distributors, paving the path for Payoneer’s fiat-based solutions.
This initiative promises reduced sell pressure on popular cryptocurrencies as fewer tokens are liquidated for payouts. Stakeholders must meet due diligence on the FTX Customer Portal.
Insights into regulatory impacts are pivotal, especially with Payoneer onboard, signaling a balancing shift toward fiat systems. Historical patterns indicate a tendency to rely on VC-backed exchanges and custodians in similar scenarios.
Financially, markets may see altered liquidity flows. The presence of custodians like Payoneer signals a cautious approach to redistributing assets across traditional and digital channels, potentially staving off immediate market volatility.
