Gate News reports that on March 7th, a private credit fund under BlackRock with approximately $26 billion in assets began restricting withdrawals due to an increase in redemption requests, sparking concerns about spillover effects on the global private credit market. Analysts warn that risks could be transmitted directly through the on-chain ecosystem. Currently, the on-chain private credit market has nearly $5 billion in size, mainly in the form of RWA tokenization within DeFi. If the underlying credit assets experience devaluation or default, the net asset value of related tokens could fluctuate, potentially triggering liquidations or tightening liquidity, thereby transmitting traditional credit pressures to the DeFi ecosystem. Additionally, tensions in this sector could propagate to the crypto market through macro deleveraging and tokenized credit products. If private credit funds are forced to deleverage or liquidate assets, it could trigger a chain reaction across broader risk assets, affecting cryptocurrencies including Bitcoin.
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