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Trad.Fi, W3 target $650 million in onchain private credit using AI evaluation
Equipment-financing lender Trad.Fi is working with W3 to automate capital workflows and bring real-economy business lending onto public blockchain rails.
Jun 9, 2026, 3:03 p.m. 2 min read
What to know:
- Trad.Fi plans to deploy $650 million in private credit on the Avalanche blockchain over the next four years, targeting U.S. equipment financing for sectors such as manufacturing, industrial electrical infrastructure and residential solar.
- Working with AI-agent developer W3, the firm aims to use artificial intelligence to assess risk, conduct due diligence and price loans so that small and mid-sized businesses can receive equipment financing in a single day instead of over months.
- The initiative, which begins with offchain funding from traditional private credit lenders, will add a tokenized liquidity pool for onchain equity investors.
“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,” Trad.Fi CEO Alexander Szul said in a statement. “This is what private credit looks like when it finally meets the speed of the real economy.”
Institutional capital is undergoing a structural shift as it interacts with digital asset infrastructure. The tokenization of real-world assets (RWAs), spanning commodities, equities, and private credit, is now a $25 billion market, having quadrupled from roughly $6.4 billion a year ago. It could become a $30 trillion industry by 2030, according to Security Token Market.
