Trad.Fi, a company known for financing heavy equipment purchases, has unveiled an ambitious plan to bring $650 million worth of private credit onto the blockchain over the next 48 months in collaboration with W3, a developer of artificial intelligence agents for institutional use. The initiative zeroes in on the US equipment distribution sector, which still relies heavily on paper-based processes.
Accelerating equipment financing is the goal
The new venture will focus primarily on manufacturing systems, industrial electrical infrastructure, and residential solar installations. By leveraging artificial intelligence for risk assessment, review processes, and credit pricing, Trad.Fi aims to slash the financing approval timeframe for small and medium-sized enterprises—from months to a single day.
Mini glossary: RWA stands for real-world asset tokenization, meaning the creation of digital representations of traditional financial assets such as bonds, loans, commodities, or equities on the blockchain. Private credit is debt financing that is usually provided outside the banking sector and does not trade on public markets.
“Small businesses are missing out on deals while they wait for financing. The answer is to move capital, records, and workflows to a programmable infrastructure. This is how private credit can finally keep pace with the real economy,” explained Trad.Fi CEO Alexander Szul.
Trad.Fi stated that the $650 million figure represents a four-year pipeline for equipment financing. The company’s objective is to create a model for private credit that is faster, fully traceable, and seamlessly integrated with digital infrastructure.
Off chain in phase one Avalanche in future plans
The initial phase will see most of the equipment financing supported directly by institutional capital from established private credit providers, but this will occur off the blockchain. At the same time, all stakeholders will develop the first bridge technology, improving their capacity to assess financial resilience and strategically position capital on chain.
Looking ahead, the project’s long range vision is even more transformative. The aim is to develop a fully programmable treasury model in which all senior capital and equity flows are settled natively via the Avalanche blockchain—an ecosystem recognized for its high throughput and focus on institutional solutions.
Tokenized liquidity pool may launch within weeks
According to the announcement, a tokenized liquidity pool managed by an unnamed third party is set to go live in the coming weeks. This pool will give eligible investors direct on chain access to the equity component of private credit deals created within the program.
Industry experts note a deeper structural transformation as institutional capital interacts with digital asset infrastructure. The tokenization of real world assets—ranging from commodities and equities to private credit—now constitutes a $25 billion market. A year ago, that figure was just $6.4 billion, and research from Security Token Market suggests the sector could hit a $30 trillion market size by 2030.
