Equipment finance platform Trad.Fi to bring $650M in private credit onchain
Private Credit
Trad.Fi has announced a strategic initiative to bring up to $650 million in equipment-finance private credit onchain over the next 48 months. This project targets the trillion-dollar US equipment finance market, which currently suffers from inefficiencies due to heavy reliance on manual paperwork. By leveraging blockchain technology, Trad.Fi aims to reduce credit approval timelines from weeks or months to a single business day. The pipeline is supported by committed senior credit facilities and signed Letters of Intent, with $85 million in term sheets already secured and $40 million nearing closure. Infrastructure provider W3 will facilitate the tokenization of these loans across the Base, Arc, and Avalanche blockchains, while legal documentation remains offchain. An upcoming third-party operated investment pool will provide exposure to these originated loans, though US investors are excluded from the initial phase. This move represents a significant effort to digitize a major, underserved credit sector, potentially expanding the $1.2 billion tokenized corporate credit market.
Key points
- ▸Trad.Fi targets $650 million in equipment-finance credit onchain over 48 months.
- ▸W3 provides infrastructure across Base, Arc, and Avalanche blockchains for loan tokenization.
- ▸Initiative aims to reduce credit approval times from months to one business day.
- ▸Current pipeline includes $85 million in signed term sheets and $40 million pending.
Background
Equipment finance involves providing capital to businesses for the acquisition of essential assets like manufacturing machinery, industrial systems, and solar installations. It is a critical component of the broader private credit market, allowing companies to manage cash flow while upgrading operational infrastructure.
Relevance
7/10
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