Trad.Fi and W3 to Bring $650M in Equipment Private Credit to Avalanche Over Four Years

CoinDesk reports that equipment finance lender Trad.Fi has partnered with enterprise AI agent developer W3 on a plan to place $650 million of private credit tied to U.S. equipment financing onto the Avalanche blockchain over the next 48 months. The initiative is designed to shift equipment financing workflows from largely offline processing to onchain execution. The program targets the U.S. equipment distribution and procurement market, spanning manufacturing systems, industrial power infrastructure and residential solar installations. Trad.Fi focuses on lending to businesses purchasing heavy equipment. The companies said financing for small and medium-sized enterprises remains heavily paper-based, with manual reviews and approval timelines that can take weeks or months. By using AI for risk assessment, due diligence and loan pricing, they aim to compress the financing cycle to within a single day. In the early phase, most funding for the underlying equipment loans will come offchain from traditional private credit institutions. The partners also plan to develop bridging capabilities, including corporate stability forecasting and onchain capital allocation. Trad.Fi said the $650 million figure represents a four-year pipeline rather than a one-time investment. The loans will be deployed on Avalanche. A later stage of the plan calls for a third-party-operated tokenized liquidity pool that would give eligible investors onchain access to the private credit equity portion generated by the program. The companies said the liquidity pool is expected to launch in the coming weeks. The longer-term objective is to run both senior and equity capital natively on Avalanche to create a programmable capital management system. Tokenization of real-world assets has accelerated over the past year. Security Token Market data shows the RWA market—covering commodities, equities and private credit—has expanded to about $25 billion, up from roughly $6.4 billion a year ago.