Trad.Fi Targets $650 Million in Tokenized Private Credit on Blockchain

Trad.Fi, a specialist in heavy equipment financing, has announced plans to tokenize $650 million of private credit over the next four years in partnership with W3, an AI developer for institutional applications. The initiative targets the US equipment distribution sector, which remains largely dependent on paper-based systems.

The project will focus on manufacturing systems, industrial electrical infrastructure, and residential solar installations. By employing AI for risk assessment and credit pricing, Trad.Fi aims to reduce financing approval times for SMEs from months to a single day—addressing a critical pain point for small businesses missing opportunities during lengthy approval processes.

Phase one will operate off-chain, with plans to migrate to Avalanche blockchain infrastructure later. A tokenized liquidity pool could launch within weeks, marking a significant step in real-world asset (RWA) tokenization—the process of creating blockchain-based digital representations of traditional financial assets like loans and bonds.