Trad.Fi, which lends money to companies that buy heavy equipment, said it is working with W3, a developer of AI agents for businesses, to deploy $650 million in private on-chain credit over the next 48 months.
The program targets the US primarily paper-based equipment distribution sector, focusing on manufacturing systems, industrial electrical infrastructure and residential solar installations. By using AI to assess risk, perform due diligence and price loans, Trad.Fi aims to compress financing terms that typically last months for small and medium-sized businesses into a single day.
“Small businesses are losing deals while waiting for funding, and the only way to fix this is to move capital, registrations and workflow into programmable lanes,” Trad.Fi CEO Alexander Szul said in a statement. “This is what private credit looks like when it finally catches up to the speed of the real economy.”
Institutional capital is undergoing structural change as it interacts with digital asset infrastructure. Real-world asset (RWA) tokenization, which spans commodities, equities and private credit, is now a $25 billion market, quadrupling from about $6.4 billion a year ago. It could become a $30 trillion industry by 2030, according to Security Token Market.
The $650 million figure represents Trad.Fi’s dedicated equipment financing origination pipeline over the next four years, the company said.
In an initial phase, institutional capital from established traditional private credit lenders will fund the bulk of the underlying equipment loans directly off-chain. At the same time, companies will work on initial bridging technology, the ability to predict corporate stability and effect blockchain capital placement.
The long-term goal of the project is a fully programmable treasury where 100% of senior and equity capital flows natively through the Avalanche blockchain.
A tokenized liquidity pool managed by an unidentified third-party operator will be launched in the coming weeks. The pool provides eligible investors with direct on-chain access to equity portions of the private credit generated by the program.
