Trad.Fi finally means it: $650M in equipment loans heads onchain, one business day at a time 🏗️

Equipment finance platform Trad.Fi plans to bring up to $650 million in private credit onchain over the next 48 months, targeting the trillion-dollar US market that funds manufacturing equipment, industrial systems and residential solar installations. The company said the figure represents a credit pipeline that will be minted onchain, backed by committed senior credit facilities and signed Letters of Intent from anchor borrowers, rather than already-deployed capital. Trad.Fi currently holds about $85 million in signed term sheets, with roughly $40 million expected to close imminently, according to the announcement shared with Cointelegraph.

The company said the initiative is designed to shorten credit approval on its platform to a single business day, compared with the weeks or months typically required for traditional lines of equipment financing. "Small businesses lose deals waiting for financing, and the only way to fix that is to move the capital, the records and the workflow onto programmable rails," said Alexander Szul, CEO of Trad.Fi. The US equipment financing market remains largely paper-based despite its rapid growth, the company added.

Investors will be able to access the originated loans through an onchain investment pool operated by a third party that has not yet been named and is expected to launch in the coming weeks. US-based investors will not be eligible during the initial phase. Infrastructure for tokenizing the loans and managing credit records will be provided by W3 across the Base, Arc and Avalanche blockchains, while legal agreements including UCC-1 filings and borrower documentation will remain offchain. Other firms operating in tokenized private credit include Centrifuge, Tradable, Maple Finance, Figure Technologies and Credix.

The initiative enters a tokenized real-world assets (RWAs) market that has cooled in recent weeks, with total value falling 4.4% over the past 30 days to $31.3 billion, according to RWA.xyz. Tokenized US Treasury debt accounted for $14.8 billion of that total, while tokenized corporate credit made up $1.2 billion as the smallest segment tracked by RWA.xyz.