BlackRock Report: US Debt Growth Will Drive Cryptocurrency Market Expansion

ChainCatcher news, according to CoinDesk, BlackRock, the world's largest asset management company, pointed out in its latest report that U.S. federal debt will swell to over $38 trillion, leading to a fragile economic environment and the failure of traditional hedging tools, which will accelerate the adoption of cryptocurrencies by Wall Street institutions.

The report emphasizes that increased government borrowing "creates vulnerabilities to shocks, such as bond yield spikes related to fiscal concerns or policy tensions between inflation management and debt servicing costs." Samara Cohen, BlackRock's Global Head of Markets, stated that stablecoins "are no longer niche products and are becoming a bridge between traditional finance and digital liquidity." The company's CEO, Larry Fink, described tokenization as the next generation of financial markets, a trend already reflected in BlackRock's $100 billion bitcoin ETF allocation, which has become a major source of its revenue.