BlackRock's $26 billion private credit fund restricts redemptions, raising concerns about spillover pressure on bitcoin and DeFi

According to Odaily, a private credit fund under asset management giant BlackRock, with a scale of approximately $26 billion, has begun to restrict withdrawals due to an increase in redemption requests, raising concerns about the spillover pressure in the global private credit market. Analysts warn that risks could also be directly transmitted on-chain. Data shows that the current on-chain private credit scale has approached $5 billion, mainly entering DeFi in the form of RWA tokenization. If the underlying credit assets experience impairment or default, the net value fluctuations of related tokens may trigger liquidations or liquidity tightening, thereby transmitting traditional credit stress to the DeFi ecosystem. In addition, tensions in this sector may be transmitted to the crypto market through two channels: macro deleveraging and tokenized credit products. If private credit funds are forced to deleverage or liquidate assets, it could trigger a chain reaction among broader risk assets, affecting crypto assets including bitcoin. (CoinDesk)