BlackRock's $26 billion private credit fund restricts redemptions, potentially triggering a chain reaction in risky assets and the crypto market.

PANews reported on March 7th that, according to CoinDesk, a BlackRock private lending fund with approximately $26 billion in assets 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 asset value fluctuations of the related tokens could trigger liquidations or liquidity tightening, thus transmitting traditional credit pressure to the DeFi ecosystem. Furthermore, tensions in this sector could be transmitted to the crypto market through both macro-level deleveraging and tokenized lending products. If private lending funds are forced to deleverage or liquidate assets, it could trigger a chain reaction across a wider range of risky assets, impacting crypto assets including Bitcoin.