In a recent development, the collapsed cryptocurrency exchange FTX Trading Ltd. is set to facilitate bankruptcy payouts in stablecoins through the services of former rivals BitGo Inc. and Payward Inc.'s Kraken, as reported by Claims Portal on Monday.

This move follows the approval of FTX's bankruptcy plan by United States Bankruptcy Court Chief Judge John Dorsey. The approved plan, crafted post the company's Chapter 11 bankruptcy filing, outlines a strategy to repay customers and creditors amounting to $16 billion within 60 days of its implementation. The plan is expected to come into effect in early 2025, after which FTX will settle its dues with the authorities.

In the interim, FTX's acting Chief Executive Officer, John Ray III, has chosen BitGo as the official custodian to safeguard the company's remaining assets. This appointment is subject to approval in an upcoming hearing.