BlackRock's $26 billion private lending fund restricts redemptions, potentially posing spillover risks to the crypto and DeFi markets.

According to Mars Finance, a private credit fund under 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 effects of pressure on the global private credit market. Analysts warn that tensions in this sector could spread to the crypto market through both macro deleveraging and tokenized credit products. If private credit funds are forced to deleverage or liquidate assets, it could trigger a chain reaction across a wider range of risky assets, including crypto assets such as Bitcoin.