Trad.Fi will tokenize $650 million of private credit over four years. The move places it alongside BlackRock and Figure Technologies in the shift to on-chain lending.
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Trad.Fi said it will tokenize $650 million of private credit on blockchain rails over the next four years. The plan places the firm among a set of traditional finance companies shifting lending activity into tokenized form.
BlackRock rolled out a tokenized money-market fund last year. Figure Technologies has already issued close to $2 billion in on-chain loans. Trad.Fi targets private credit, a segment where settlement times typically stretch weeks and the buyer pool is limited to institutional investors. Tokenised credit can settle in minutes and allows fractional ownership, widening access beyond the usual syndicated loan buyers, the firm said.
Trad.Fi did not name the blockchain networks or platforms it intends to use. The company also declined to say whether retail investors will get access or the offer will stay limited to qualified purchasers. The four-year rollout, stretching to 2028, comes with no interim milestones. That timeline suggests the migration involves existing loan books rather than new issuance only, the firm said in a statement.
The global private credit market has grown to roughly $1.7 trillion, Preqin data shows. Proponents argue tokenisation can cut administrative overhead and improve transparency through real-time ledger updates. Skeptics point to unresolved regulatory questions and the difficulty of enforcing loan terms when the collateral and legal agreements sit off-chain. Trad.Fi's four-year horizon signals it sees both the cost savings and the friction.
Trad.Fi is a private firm founded in 2021 and focused on credit-linked products. The company did not disclose the expected costs of the tokenisation programme or the projected revenue from the on-chain loans.
For broader context on how tokenized assets are changing market structure, see AlphaScala's crypto market analysis.
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