Introduction & Motivation
1.1 Why We Built This
Tokenized private credit is becoming one of the most promising real-world applications of blockchain. Businesses across industries—real estate developers, importers, manufacturers, agricultural cooperatives, luxury asset dealers, e-commerce operators—are exploring how to raise capital by tokenizing their commercial cycles and offering fixed-yield credit directly to their communities.
But while demand is exploding, the tooling isn’t there.
The Gap: No Infrastructure for “Everyday” Tokenization
Most of today’s tokenization happens at the institutional layer:
Credit funds tokenizing senior or mezzanine tranches
Structured credit pools run by fintech platforms
Custodial, permissioned, heavily intermediated pipelines
What’s missing is the infrastructure for actual businesses—the ones running inventory cycles, construction cycles, import/export cycles—to tokenize their future revenue and raise capital directly from the market.
What These Businesses Told Us
Across dozens of conversations with:
SME operators
Trade finance teams
RWA founders
Supply-chain platforms
Real-world project creators
…we heard the same things:
“We know our business. We know how to structure the deal. We just don’t have the developers.”
“We need transparency and trust for investors, but we can’t build smart contracts.”
“Tokenization is perfect for us — but too technical to start.”
They don’t want to become blockchain companies. They want to access capital.
And that’s where Trustless Work already plays a critical role.
Escrows: The Missing Trust Layer in Tokenized Credit
Tokenized credit only works if investors can trust that:
Funds are held securely
Money is released only when real-world conditions are met
There is transparency into how capital moves
This is exactly what Trustless Work already provides.
We solved one of the hardest pieces of tokenization:
✔ Milestone-based escrows ✔ Role-based approvals ✔ Transparent release conditions ✔ Auditable on-chain history ✔ Investor-visible escrow viewer
If Stellar solved “how money moves,” Trustless Work solves how money waits while real-world work happens.
This is why every tokenization use case that came to us—real estate, trade finance, equipment financing, agriculture, automotive imports, hotel renovations—asked if they could integrate our escrows as their trust layer.
They need capital controls, trust, and credibility.
Why We’re Building This Hackathon Project
To unlock real tokenized private credit, you need three pillars:
A trust layer → the escrow
A participation layer → the token
A redemption layer → the vault
Before this hackathon, Trustless Work already delivered the first pillar at production level.
This hackathon project adds the other two—so builders can create full tokenized private credit flows without hiring a blockchain engineering team.
1.2 What This Project Adds to Trustless Work
This hackathon expands Trustless Work from an escrow infrastructure into a full tokenization primitive.
New Smart Contract Modules
Token Factory
Creates participation tokens tied to an escrow ID
Token Sale Contract
Swaps USDC → participation token & deposits funds into the escrow
Vault Contract
Handles final ROI deposits and investor redemptions (token burn + payout)
These contracts are intentionally modular, permissionless, and business-agnostic.
New dApps Built for the Hackathon
Backoffice
Project Creator
Deploy escrow, create token, launch sale
Project Dashboard
Manager / Operator
Update milestones, upload evidence, drive project execution
Investor Portal
Investors
Buy tokens, monitor escrow, claim ROI
Why This Matters
These components turn Trustless Work into:
A tokenized credit engine
A developer-ready toolkit
A trust layer for real-world capital
A secure, auditable foundation for any tokenization platform
Future Expansion Potential
This module easily extends into:
Private credit marketplaces
SME tokenization templates
Vertical-specific UIs (real estate, trade, agriculture)
Fully modular tokenized credit infrastructure
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