Trad.Fi, which lends money to companies buying 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 heavily paper-based U.S. equipment distribution industry, focusing on manufacturing systems, industrial electrical infrastructure and residential solar installations. By using AI to assess risks, conduct due diligence and price loans, Trad.Fi aims to reduce the typically months-long financing lead times for small and medium-sized businesses in a single day.
“Small businesses are losing contracts waiting for funding, and the only way to solve this problem is to move capital, records and workflow onto programmable rails,” Alexander Szul, CEO of Trad.Fi, said in a statement. “This is what private credit looks like when it finally responds to the pace of the real economy.”
Institutional capital undergoes structural change as it interacts with digital asset infrastructure. Tokenization of real-world assets (RWA), spanning commodities, stocks and private credit, is now a $25 billion market, having quadrupled from $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 targeted equipment financing origination pipeline over the next four years, the company said.
In a first phase, institutional capital from established traditional private lenders will finance 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 business stability and carry out capital placement in the blockchain.
The long-term goal of the project is a fully programmable treasury in which 100% of senior capital and equity flow natively through the Avalanche blockchain.
A tokenized liquidity pool managed by an unidentified third-party operator will launch in the coming weeks. The pool provides eligible investors with direct on-chain access to the equity portions of the private credit generated by the program.
