Failed cryptocurrency exchange FTX seeks the help of Galaxy Digital to enable the sale, staking and hedging of key crypto assets.
FTX Teams up with Galaxy Digital to Optimize Management of Crypto Assets
This move aims to facilitate the return of funds to creditors while maintaining the value of crypto assets.
FTX has expressed its intention to repay creditors in fiat currency, with a particular focus on the dollar, rather than opting for Bitcoin (BTC) or Ethereum (ETH).
However, the exchange remains wary of the potential impact on the value of crypto assets that exceed $3 billion. To navigate this complex scenario, FTX draws on the expertise of Galaxy Digital, a leading player in digital asset management.
According to recently filed court documents from FTX, the exchange believes that strategic hedging of Bitcoin and Ethereum can mitigate potential downside risks before initiating sales of these digital assets.
Additionally, FTX is considering staking certain digital assets to generate returns while maintaining their value. This move could benefit the exchange's ownership and thus its creditors, by taking advantage of crypto assets that are otherwise dormant.
Galaxy Asset Management's involvement offers significant hope for FTX's efforts.
The firm's extensive experience in digital asset management and trading combined with its expertise in related transactions and investment strategies creates a valuable collaboration.
Led by Mike Novogratz, Galaxy Digital has earned a reputation for its insights and proficiency in the crypto space.
*Not investment advice.
