BlackRock Report: U.S. Debt Growth Will Drive Cryptocurrency Market Growth

According to CoinDesk, the world's largest asset management company BlackRock 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 Wall Street's adoption of cryptocurrencies.

The report emphasizes that increased government borrowing "will create vulnerabilities to shocks, such as soaring bond yields related to policy tensions between fiscal concerns or inflation management and debt servicing costs." Samara Cohen, BlackRock's Global Head of Market Development, stated that stablecoins "are no longer a niche product 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 that has been reflected in BlackRock's $100 billion Bitcoin ETF allocation, becoming a major source of revenue.