Trad.Fi to mint up to $650M of U.S. equipment loans onchain

Trad.Fi plans to mint up to $650 million of U.S. equipment finance loans onchain over the next 48 months. The company described the amount as a credit pipeline to be tokenized as loans are originated, not as immediately deployed capital.

Trad.Fi said the pipeline will be backed by committed senior credit facilities and signed letters of intent from anchor borrowers. The company reported about $85 million in signed term sheets and roughly $40 million it expects to close imminently.

The program will include an onchain investment pool to give outside investors exposure to equipment-finance loans originated on Trad.Fi’s platform. A third-party operator, not yet named, will run the pool, which Trad.Fi expects to launch in the coming weeks. U.S.-based investors will be excluded in the initial phase.

W3 will supply the infrastructure for tokenizing loans and managing associated credit records across the Base, Arc and Avalanche blockchains. Legal documents tied to the loans, including UCC-1 security filings and borrower paperwork, will remain offchain and in traditional legal formats.

The initiative targets the equipment finance market that funds manufacturing machinery, industrial systems and residential solar installations. Trad.Fi intends to shorten approval times that it says can take weeks or months under traditional credit lines by digitizing credit approval, recordkeeping and settlement so approvals can occur within a single business day.

Alexander Szul, Trad.Fi’s chief executive, said, “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.”

Tokenized real-world assets remain a growing but fluctuating market. Recent data show total tokenized RWA value at about $31.3 billion, down around 4.4% over the past 30 days. Tokenized U.S. Treasury debt represents roughly $14.8 billion of that total, while tokenized corporate credit is about $1.2 billion. Firms that have offered tokenized credit or asset products include Centrifuge, Tradable, Maple Finance, Figure Technologies and Credix.

Trad.Fi plans to mint portions of the $650 million pipeline as loans are closed and brought onto its platform over the 48-month period. The company said contractual, operational and regulatory details for the investment pool and tokenization program are still being finalized.