Trad.Fi and W3 Plan $650M Onchain Private Credit Expansion on Avalanche

Trad.Fi, a private credit firm specializing in equipment financing, has partnered with enterprise AI agent developer W3 to bring $650 million in private credit onchain over the next 48 months. The initiative aims to modernize the U.S. equipment distribution industry by leveraging blockchain technology, artificial intelligence, and tokenized real-world assets (RWAs) to streamline lending and improve capital access for businesses.

The program will focus on sectors including manufacturing systems, industrial electrical infrastructure, and residential solar installations. Traditionally, equipment financing for small and medium-sized enterprises (SMEs) involves extensive paperwork and approval processes that can take weeks or even months. By integrating AI-powered risk assessment, automated due diligence, and dynamic loan pricing, Trad.Fi intends to reduce financing approval times to as little as one day.

According to Trad.Fi CEO Alexander Szul, many small businesses lose valuable opportunities while waiting for financing approvals. He stated that moving capital, records, and workflows onto programmable blockchain infrastructure can significantly improve efficiency and better align financing with the pace of the real economy.

The partnership reflects the growing adoption of tokenized real-world assets within institutional finance. The RWA market, which includes private credit, equities, commodities, and other traditional financial instruments, has expanded rapidly to approximately $25 billion, up from around $6.4 billion a year ago. Industry forecasts suggest the sector could reach $30 trillion by 2030 as more financial institutions embrace blockchain-based asset management.

Trad.Fi clarified that the $650 million figure represents its targeted equipment-financing origination pipeline over the next four years. During the initial phase, established private credit lenders will provide most of the funding for equipment loans through traditional offchain channels. Simultaneously, Trad.Fi and W3 will develop the technology needed to predict corporate stability, automate lending decisions, and facilitate blockchain-based capital deployment.

The long-term vision is to establish a fully programmable treasury system where all senior and equity capital is managed natively on the Avalanche blockchain. As part of this strategy, a tokenized liquidity pool operated by a third-party manager is expected to launch in the coming weeks, giving qualified investors direct onchain access to the equity portion of private credit assets generated through the program.