US-based equipment finance platform Trad.Fi has announced plans to bring up to $650 million in private credit onto blockchain networks over the next four years. The initiative targets one of the largest and least digitized credit markets in the United States: the trillion-dollar industry funding manufacturing equipment, industrial systems, and residential solar installations.
The $650 million figure is not deployed capital but a credit pipeline that will be minted onchain. It is backed by committed senior credit facilities and signed Letters of Intent from anchor borrowers. Trad.Fi currently has about $85 million in signed term sheets, with around $40 million expected to close imminently, according to a statement shared with Cointelegraph.
Addressing slow credit approval processes
The company aims to address what it sees as a financing chokepoint in the manufacturing industry. Traditional lines of credit can take weeks or even months to approve due to heavy reliance on paperwork. Trad.Fi says it can reduce digital credit approval to a single business day. Alexander Szul, CEO of Trad.Fi, noted that US equipment financing is a fast-growing industry that still relies heavily on paper-based processes, making credit approval slower and costing businesses time and money.
Onchain investment pool for investors
The initiative will include an onchain investment pool that gives investors exposure to the equipment-finance loans originated through the platform. The pool will be operated by a third party that has not yet been named and is expected to launch in the coming weeks. During the initial phase, US-based investors will not be eligible to participate.
W3 will provide the infrastructure for tokenizing the loans and managing associated credit records across the Base, Arc, and Avalanche blockchains. Legal agreements tied to the loans, including UCC-1 filings and borrower documentation, will remain offchain for now.
Growing tokenized RWA market
Other companies offering similar tokenized credit products include Centrifuge, Tradable, Maple Finance, Figure Technologies, and Credix. The initiative would add to the growing market for tokenized real-world assets (RWAs), though the sector has cooled somewhat in recent weeks. Total RWA value has fallen 4.4% over the past 30 days to approximately $31.3 billion, according to data from RWA.xyz.
Tokenized US Treasury debt accounts for about $14.8 billion of that total. Tokenized corporate credit represents the smallest segment at roughly $1.2 billion. The Trad.Fi move could help expand that niche if it gains traction with borrowers and investors alike.
