BlackRock's $26 billion private credit fund restricts redemptions, raising market concerns about spillover pressure onto Bitcoin and DeFi.

A private lending fund managed by asset management giant BlackRock, with approximately $26 billion in assets under management, has begun restricting withdrawals due to rising redemption requests, raising concerns about the spillover of pressure from the global private lending market. Analysts warn that the risk could also be transmitted directly on-chain. Data shows that the current scale of on-chain private lending is approaching $5 billion, mainly entering DeFi in the form of RWA tokens. Once the underlying credit assets experience impairment or default, the net value fluctuations of the related tokens could trigger liquidations or liquidity tightening, thereby transmitting traditional credit pressure to the DeFi ecosystem. In addition, tensions in this sector could be transmitted to the crypto market through both macro deleveraging and tokenized lending products. If private lending funds are forced to deleverage or liquidate assets, it could trigger a chain reaction in a wider range of risky assets, affecting crypto assets including Bitcoin. (CoinDesk)